THE EMPLOYEES’ STATE INSURANCE ACT, 1948 

________ 

ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent, commencement and application. 
2.  Definitions. 
2A. Registration of factories and establishments. 

CHAPTER II 

CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL 

3.  Establishment of Employees’ State Insurance Corporation. 
4.  Constitution of Corporation. 
5.  Term of office of members of the Corporation. 
6.  Eligibility for re-appointment or re-election. 
7.  Authentication of orders, decisions, etc. 
8.  Constitution of Standing Committee. 
9.  Term of office of members of Standing Committee. 
10.  Medical Benefit Council. 
11.  Resignation of membership. 
12.  Cessation of membership. 
13.  Disqualification. 
14.  Filling of vacancies. 
15.  Fees and allowances. 
16.  Appointment of a Director General and a Financial Commissioner. 
17.  Staff. 
18.  Powers of the Standing Committee. 
19.  Corporation’s power to promote measures for health, etc., of insured persons. 
20.  Meetings of Corporation, Standing Committee and Medical Benefit Council. 
21.  Supersession of the Corporation and Standing Committee. 
22.  Duties of Medical Benefit Council. 
23.  Duties of Principal Officers. 
24.  Acts of Corporation, etc., not invalid by reason of defect in constitution, etc. 
25.  Regional Boards, Local Committees, Regional and Local Medical Benefit Councils. 

CHAPTER III 
FINANCE AND AUDIT 

26.  Employees’ State Insurance Fund. 
27.  [Omitted.] 
28.  Purposes for which the Fund may be expended. 
28A. Administrative expenses. 
29.  Holding of property, etc. 
30.  Vesting of the property in the Corporation. 
31.  [Omitted.] 
32.  Budget estimates. 

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SECTIONS 

33.  Accounts. 
34.  Audit. 
35.  Annual report. 
36.  Budget, audited accounts and the annual report to be placed before Parliament. 
37.  Valuation of assets and liabilities. 

CHAPTER IV 
CONTRIBUTIONS 

38.  All employees to be insured. 
39.  Contributions. 
40.  Principal employer to pay contributions in the first instance. 
41.  Recovery of contribution from immediate employees. 
42.  General provisions as to payment of contribution. 
43.  Method of payment of contributions. 
44.  Employers to furnish returns and maintain registers in certain cases. 
45.  Social Security Officers, their functions and duties. 
45A. Determination of contributions in certain cases. 
45AA. Appellate authority. 
45B. Recovery of contributions. 
45C. Issue of certificate to the Recovery Officer. 
45D.Recovery officer to whom certificate is to be forwarded. 
45E. Validity of certificate and amendment thereof. 
45F. Stay of proceedings under certificate and amendment or withdrawal thereof. 
45G. Other modes of recovery. 
45H. Application of certain provisions of the Income-tax Act. 
45-I. Definitions. 

CHAPTER V 
BENEFITS 

46.  Benefits. 
47.  [Omitted.] 
48.  [Omitted.] 
49.  Sickness benefit 
50.  Maternity benefit. 
51.  Disablement benefit. 
51A. Presumption as to accident arising in course of employment. 
51B. Accidents happening while acting in breach of regulations, etc. 
51C. Accidents happening while travelling in employer’s transport. 
51D. Accidents happening while meeting emergency. 
51E. Accidents happening while commuting to the place of work and vice versa. 
52.  Dependant’s benefit. 
52A. Occupational disease. 
53.  Bar against receiving or recovery of compensation or damages under any other law. 
54.  Determination of question of disablement. 

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SECTIONS 

54A. References to medical boards and appeals to medical appeal tribunals and Employees’ Insurance 

Courts. 

55.  Review of decisions by medical board or medical appeal tribunal. 
55A. Review of dependant’s benefit. 
56.  Medical benefit. 
57.  Scale of medical benefit; 
58.  Provision of medical treatment by State Government. 
59.  Establishment and maintenance of hospitals, etc., by Corporation. 
59A. Provision of medical benefit by the Corporation in lieu of State Government. 
59B. Medical and para-medical education. 

General 

60.  Benefit not assignable or attachable. 
61.  Bar of benefits under other enactments. 
62.  Persons not to commute cash benefits. 
63.  Persons not entitled to receive benefit in certain cases. 
64.  Recipients of sickness or disablement benefit to observe conditions. 
65.  Benefits not to be combined. 
66.  [Omitted.] 
67.   [Omitted.] 
68.  Corporation’s rights where a principal employer fails or neglects to pay any                 

contribution. 

69.  Liability of owner or occupier of factories, etc., for excessive sickness benefit. 
70.  Repayment of benefit improperly received. 
71.  Benefit payable up to and including day of death. 
72.  Employer not to reduce wages, etc. 
73.  Employer not to dismiss or punish employee during period of sickness, etc. 

CHAPTER VA 
SCHEME FOR OTHER BENEFICIARIES 

73A. Definitions. 
73B. Power to frame Scheme. 
73C. Collection of user charges. 
73D. Scheme for other beneficiaries. 
73E. Power to amend Scheme. 
73F. Laying of Scheme framed under this Chapter. 

CHAPTER VI 
ADJUDICATION OF DISPUTE AND CLAIMS 

74.  Constitution of Employees’ Insurance Court. 
75.  Matters to be decided by Employees’ Insurance Court. 
76.  Institution of proceedings, etc. 
77.  Commencement of proceedings. 
78.  Powers of Employees’ Insurance Court. 
79.  Appearance by legal practitioners, etc. 
80.  [Omitted.] 
81.  Reference to High Court. 
82.  Appear. 
83.  Stay of payment pending appeal. 

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CHAPTER VII 
PENALTIES 

SECTIONS 

84.  Punishment for false statement. 
85.  Punishment for failure to pay contributions, etc. 
85A. Enhanced punishment in certain cases after previous conviction. 
85B. Power to recover damages. 
85C. Power of Court to make orders. 
86.  Prosecutions. 
86A. Offences by companies. 

CHAPTER VIII 
MISCELLANEOUS 

87.  Exemption of a factory or establishment or class of factories or establishments. 
88.  Exemption of persons or class of persons. 
89.  Corporation to make representation. 
90.  Exemption of factories or establishments belonging to Government or any local  authority. 
91.  Exemption from one or more provisions of the Act. 
91A. Exemptions to be either prospective or retrospective. 
91AA. Central Government to be appropriate Government. 
91B. Misuse of benefits. 
91C. Writing off of losses. 
92.  Power of Central Government to give directions. 
93.  Corporation officers and servants to be public servants. 
93A. Liability in case of transfer of establishment. 
94.  Contributions, etc., due to Corporation to have priority over other debts. 
94A. Delegation of powers. 
95.  Power of Central Government to make rules. 
96.  Power of State Government to make rules. 
97.  Power of Corporation to make regulations. 
98.  [Omitted.] 
99.  Medical care for the families of insured persons. 
99A. Power to remove difficulties. 
100. Repeals and savings. 

[THE FIRST SCHEDULE] OMITTED 

THE SECOND SCHEDULE. 

THE THIRD SCHEDULE. 

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THE EMPLOYEES’ STATE INSURANCE ACT, 1948 
ACT NO. 34 OF 19481 

[19th April, 1948.] 
An  Act  to  provide  for  certain  benefits  to  employees  in  case  of  sickness,  maternity  and 

employment injury and to make provision for certain other matters in relation thereto. 
WHEREAS it is expedient to provide for certain benefits to employees in case of sickness, maternity 

and employment injury and to make provision for certain other matters in relation thereto; 

It is hereby enacted as follows:— 

CHAPTER I 
PRELIMINARY 

1. Short title, extent, commencement and application.—(1) This Act may be called the Employees’ 

State Insurance Act, 1948. 

(2) It extends to the whole of India 2***. 
(3) It shall come into force on such date or dates3  as the Central Government may, by notification in 
the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and 
4[for different States or for different parts thereof]. 

(4)  It  shall  apply,  in  the  first  instance,  to  all  factories  (including  factories  belonging  to  the 

Government) other than seasonal factories: 

5[Provided  that  nothing  contained  in  this  sub-section  shall  apply  to  a  factory  or  establishment 
belonging to or under the control of the Government whose employees are otherwise in receipt of benefits 
substantially similar or superior to the benefits provided under this Act.] 

(5)  The  appropriate  Government  may,  in  consultation  with  the  Corporation  and  6[where  the 
appropriate  Government  is  a  State  Government,  with  the  approval  of  the  Central  Government],  after 
giving 7[one month’s] notice of its intention of so doing by notification in the Official Gazette, extend the 
provisions  of  this  Act  or  any  of  them,  to  any  other  establishment  or class  of  establishments,  industrial, 
commercial, agricultural or otherwise: 

8[Provided that where the provisions of this Act have been brought into force in any part of a State, 
the said provisions shall stand extended to any such establishment or class of establishments within that 
part  if the  provisions  have  already  been extended  to similar  establishment  or  class of establishments in 
another part of that State].  

5[(6) A factory or an establishment to which this Act applies shall continue to be governed by this Act 
notwithstanding that the number of persons employed therein at any time falls below the limit specified 
by or under this Act or the manufacturing process therein ceases to be carried on with the aid of power.] 

1. This Act has been extended to Jaunsar Bawar Parganas in the Dehra Dun District and the areas of South of Kaimpur range in 
the Mirzapur District of the State of Uttar Pradesh by Schedule IV of Act 20 of 1954; to Pondicherry by Reg. 7  of 1963, s. 3 
and Schedule and to Goa, Daman and Diu by Reg. 11 of 1963, s.3 and the Schedule (w.e.f. 1-8-1965). 

2. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971). 
3. For dates see Annexure. 
4. Subs. by Act 53 of 1951, s. 2, for “for different States” (w.e.f. 6-10-1951). 
5. Ins. by Act 29 of 1989, s. 2 (w.e.f. 20-10-1989). 
6. Subs. by Act 53 of 1951, s. 2, for “with the approval of the Central Government” (w.e.f. 6-10-1951). 
7. Subs. by Act 18 of 2010, s. 2, for “six month’s ” (w.e.f. 1-6-2010).  
8. Ins. by Act 29 of 1989, s. 2 (w.e.f. 16-5-1990). 

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2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,— 

(1)  “appropriate  Government”  means,  in  respect  of  establishments  under  the  control  of  the 
Central Government or  1[a railway administration] or a major port or a mine or oilfield, the Central 
Government, and in all other cases, the State Government;  

2* 

* 

  * 

           *  

* 

(3) “confinement” means labour resulting in the issue of a living child or labour after twenty-six 

weeks of pregnancy resulting in the issue of a child whether alive or dead; 

(4) “contribution” means the sum of money payable to the Corporation by the principal employer 
in  respect  of  an  employee  and  includes  any  amount  payable  by  or  on  behalf  of  the  employee  in 
accordance with the provisions of this Act;  

3* 

* 

* 

* 

* 

(6) “Corporation” means the Employees’ State Insurance Corporation set up under this Act;  

4[(6A) “dependant” means any of the following relatives of a deceased insured person, namely:— 

5[(i)  a  widow,  a  legitimate  or  adopted  son  who  has  not  attained  the  age  of  twenty-five 

years, an unmarried legitimate or adopted daughter,] 

6[(ia) a widowed, mother;] 

(ii) if wholly dependent on the earnings of the insured person at the time of his death, a 
legitimate or adopted son or daughter who has attained the age of 7[twenty-five years] and 
is infirm; 

(iii) if wholly or in part dependent on the earnings of the insured person at the time of 

his death,— 

(a) a parent other than a widowed mother, 

(b) a minor illegitimate son, an unmarried illegitimate daughter or a daughter 
legitimate  or  adopted  or  illegitimate  if  married  and  a  minor  or  if  widowed  and  a 
minor, 

(c) a minor brother or an unmarried sister or a widowed sister if a minor, 

(d) a widowed daughter-in-law, 

(e) a minor child of a pre-deceased son, 

(f)  a  minor  child  of  a  pre-deceased  daughter  where  no  parent  of  the  child  is 

alive, or 

(g) a paternal grand-parent if no parent of the insured person is alive;] 

(7) “duly appointed” means appointed in accordance with the provisions of this Act or with the 

rules or regulations made thereunder;  

8[(8)  “employment  injury”  means  a  personal  injury  to  an  employee  caused  by  accident  or  an 
occupational  disease  arising  out  of  and  in  the  course  of  his  employment,  being  an  insurable 

1. Subs. by the A.O. 1950, for “a federal railway”. 
2. Omitted by Act 29 of 1989, s. 3 (w.e.f. 16-5-1990). 
3. Omitted by s. 3, ibid. (w.e.f. 1-2-1991). 
4. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968). 
5. Subs. by Act 18 of 2010, s. 3, for sub-clause (i) ((w.e.f. 1-6-2010).  
6. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989). 
7. Subs. by Act 18 of 2010, s. 3, for “eighteen years” (w.e.f. 1-6-2010). 
8. Subs. by Act 44 of 1966, s. 2, for clause (8) (w.e.f. 28-1-1968). 

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employment, whether the accident occurs or the occupational disease is contracted within or outside 
the territorial limits of India;] 

(9)  “employee”  means  any  person  employed  for  wages  in  or  in  connection  with  the  work  of  a 

factory or establishment to which this Act applies and— 

(i)  who  is  directly  employed  by  the  principal  employer  on  any  work  of,  or  incidental  or 
preliminary to or connected with the work of, the factory or establishment, whether such work is 
done by the employee in the factory or establishment or elsewhere; or  

(ii) who is employed by or through an immediate employer on the premises of the factory or 
establishment or under the supervision of the principal employer or his agent on work which is 
ordinarily  part  of the  work  of  the factory  or  establishment  or  which  is  preliminary  to  the  work 
carried on in or incidental to the purpose of the factory or establishment; or 

(iii) whose services are temporarily lent or let on hire to the principal employer by the person 
with  whom  the  person  whose  services  are  so  lent  or  let  on  hire  has  entered  into  a  contract  of 
service;  

1[and  includes  any  person  employed  for  wages  on  any  work  connected  with  the  administration  of  the 
factory or establishment or any part, department or branch thereof or with the purchase of raw materials 
for, or the distribution or sale of the products of, the factory or establishment 2[or any person engaged as 
an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), or  3[and 
includes such person  engaged as apprentice whose training period is extended to any length of time] but 
does not include]— 

(a) any member of 4[the Indian] naval, military or air forces; or  

5[(b)  any  person  so  employed  whose  wages  (excluding  remuneration  for  overtime  work) 

exceed 6[such wages as may be prescribed by the Central Government]: 

Provided that an employee whose wages (excluding remuneration for overtime work) exceed  6[such 
wages as may be prescribed by the Central Government] at any time after (and not before) the beginning 
of the contribution period, shall continue to be an employee until the end of that period;] 

(10)  “exempted  employee”  means  an  employee  who  is  not  liable  under  this  Act  to  pay  the 

employee’s contribution;  

7[(11) “family” means all or any of the following relatives of an insured person, namely:— 

(i) a spouse;  

(ii) a minor legitimate or adopted child dependent upon the insured person;  

(iii) a child who is wholly dependent on the earnings of the insured person and who is— 

(a) receiving education, till he or she attains the age of twenty-one years, 

(b) an unmarried daughter;  

(iv) a child who is infirm by reason of any physical or mental abnormality or injury and is 

wholly dependent on the earnings of the insured person, so long as the infirmity continues; 

8[(v) dependant parents, whose income from all sources does not exceed such income as 

may be prescribed by the Central Government; 

1. Subs. by Act 44 of 1966, s. 2, for “but does not include” (w.e.f. 28-1-1968). 
2. Subs. by Act 29 of 1989, s. 3, for “but does not include” (w.e.f. 20-10-1989). 
3. Subs. by Act 18 of 2010, s. 3, for “or under the standing orders of the establishment;” (w.e.f. 1-6-2010). 
4. Subs. by the A.O. 1950, for “His Majesty’s”. 
5. Subs. by Act 44 of 1966, s. 2, for sub-clause (b) (w.e.f. 28-1-1968). 
6. Subs. by Act 29 of 1989, s. 3, for “one thousand and six hundred rupees a month” (w.e.f. 1-2-1991). 
7. Subs. by s. 3, ibid., for clauses (11) and (12) (w.e.f. 20-10-1989). 
8. Subs. by Act 18 of 2010, s. 3, for sub-clause (v) (w.e.f. 1-6-2010). 

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(vi) in case the insured person is unmarried and his or her parents are not alive, a minor 

brother or sister wholly dependant upon the earnings of the insured person;] 

1[(12) “factory” means any premises including the precincts thereof whereon ten or more persons 
are employed or were employed on any day of the preceding twelve months, and in any part of which 
a manufacturing process is being carried on or is ordinarily so carried on, but does not include a mine 
subject to the operation of the Mines Act, 1952 (35 of 1952) or a railway running shed;] 

(13)  “immediate  employer”,  in  relation  to  employees  employed  by  or  through  him,  means  a 
person who has undertaken the execution, on the premises of a factory or an establishment to which 
this Act applies or under the supervision of the principal employer or his agent, of the whole, or any 
part of any work which is ordinarily part of the work of the factory or establishment of the principal 
employer or is preliminary to the work carried on in, or incidental to the purpose of, any such factory 
or establishment, and includes a person by whom the services of an employee who has entered into a 
contract  of  service  with  him  are  temporarily  lent  or  let  on  hire  to  the  principal  employer;  2[and 
includes a contractor];  

3[(13A)  “insurable  employment”  means  an  employment  in  a  factory  or  establishment  to  which 

this Act applies;] 

(14)  “insured  person”  means  a  person  who  is  or  was  an  employee  in  respect  of  whom 
contributions are or were payable under this Act and who is by reason thereof, entitled to any of the 
benefits provided by this Act;  

3[(14A) “managing agent” means any person appointed or acting as the representative of another 
person for the purpose of carrying on such other person’s trade or business, but does not include an 
individual manager subordinate to an employer;  

4[(14AA)  “manufacturing  process”  shall  have  the  meaning  assigned  to  it  in  the  Factories  Act, 

1948 (63 of 1948);] 

(14B) “mis-carriage” means expulsion of the contents of a pregnant uterus at any period prior to 
or  during  the twenty-sixth week  of  pregnancy  but  does  not include  any  miscarriage,  the  causing  of 
which is punishable under the Indian Penal Code (45 of 1860);]  

(15) “occupier” of the factory shall have the meaning assigned to it in the Factories Act,  5[1948          

(63 of 1948)];  

3[(15A)  “permanent  partial  disablement”  means  such  disablement  of  a  permanent  nature,  as 
reduces  the  earning  capacity  of  an  employee  in  every  employment  which  he  was  capable  of 
undertaking at the time of the accident resulting in the disablement:  

Provided that every injury specified in Part II of the Second Schedule shall be deemed to result in 

permanent partial disablement;  

(15B)  “permanent  total  disablement”  means  such  disablement  of  a  permanent  nature  as 
incapacitates an employee for all work which he was capable of performing at the time of the accident 
resulting in such disablement:  

Provided that permanent total disablement shall be deemed to result from every injury specified 
in Part I of the Second Schedule or from any combination of injuries specified in Part II thereof where 
the aggregate percentage of the loss of earning capacity, as specified in the said Part II against those 
injuries, amounts to one hundred per cent. or more;]  

4[(15C) “power” shall have the meaning assigned to it in the Factories Act, 1948 (53 of 1948);] 

(16) “prescribed” means prescribed by rules made under this Act: 

1. Subs. by Act 18 of 2010, s. 3, for clause (12) (w.e.f. 1-6-2010). 
2. Added by Act 29 of 1989 s. 3 (w.e.f. 20-10-1989). 
3. Ins. by Act 44 of 1966, s. 2 (w.e.f. 28-1-1968) 
4. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989). 
5. Subs. by Act 53 of 1951, s. 3, for “1934” (w.e.f. 6-10-1951). 

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(17) “principal employer” means— 

(i) in a factory, the owner or occupier of the factory and includes the managing agent of such 
owner or occupier, the legal representative of a deceased owner or occupier, and where a person 
has been named as the manager of the factory under  1[the Factories Act, 1948 (63 of 1948)], the 
person so named; 

(ii) in any establishment under the control of any department of any Government in India, the 
authority appointed by such Government in this behalf or where no authority is so appointed, the 
head of the department; 

(iii) in any other establishment, any person responsible for the supervision and control of the 

establishment; 

(18) “regulation” means a regulation made by the Corporation; 

(19) “Schedule” means a Schedule to this Act;  

2[(19A) “seasonal factory” means a factory which is exclusively engaged in one or more of the 
following manufacturing processes, namely, cotton ginning, cotton or jute pressing, decortication of 
groundnuts,  the  manufacture  of  coffee,  indigo,  lac,  rubber,  sugar  (including  gur)  or  tea  or  any 
manufacturing  process  which  is  incidental  to  or  connected  with  any  of  the  aforesaid  processes  and 
includes a factory which is engaged for a period not exceeding seven months in a year— 

(a) in any process of blending, packing or repacking of tea or coffee; or  

(b) in  such  other  manufacturing  process  as the  Central  Government  may,  by  notification in  the 

Official Gazette, specify;] 

(20) “sickness” means a condition which requires medical treatment and attendance and necessitates 

abstention from work on medical grounds; 

(21) “temporary disablement” means a condition resulting from an employment injury which requires 
medical treatment and renders an employee, as a result of such injury, temporarily incapable of  3[doing 
the work which he was doing prior to or at the time of the injury]; 

(22)  “wages”  means  all  remuneration  paid  or  payable,  in  cash  to  an  employee,  if  the  terms  of  the 
contract of employment, express or implied, were fulfilled and includes 4[any payment to an employee in 
respect  of  any  period  of  authorised  leave,  lock-out,  strike  which  is  not  illegal  or  lay-off  and]  other 
additional remuneration, if any, 5[paid at intervals not exceeding two months], but does not include— 

(a)  any  contribution  paid  by  the  employer  to  any  pension fund  or  provident  fund,  or  under 

this Act;  

(b) any travelling allowance or the value of any travelling concession; 

(c) any sum paid to the person employed to defray special expenses entailed on him by the 

nature of his employment; or 

(d) any gratuity payable on discharge;  

6[(23) “wage period” in relation to an employee means the period in respect of which wages are 
ordinarily  payable  to  him  whether  in  terms  of  the  contract  of  employment,  express  or  implied  or 
otherwise;]  

1. Subs. by Act 53 of 1951, s. 3, for “clause (e) of sub-section (1) of section 9 of the Factories Act, 1934” (w.e.f. 6-10-1951). 
2. Ins. by Act 29 of 1989, s. 3 (w.e.f. 20-10-1989). 
3. Subs. by Act 44 of 1966, s. 2, for “work” (w.e.f. 28-1-1968). 
4. Ins. by s. 2, ibid. (w.e.f. 28-1-1968). 
5. Subs. by Act 53 of 1951, s. 3, for “paid at regular intervals after the last day of the wage period” (w.e.f. 6-10-1951). 
6. Subs. by Act 45 of 1984, s. 2, for clause (23) (w.e.f. 27-1-1985). 

9 

 
 
 
                                                           
1[(24)  all  other  words  and  expressions  used  but  not  defined  in  this  Act  and  defined  in  the 
Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectively assigned to them in 
that Act.]  

2[2A. Registration of factories and establishments.—Every factory or establishment to which this 
Act applies shall be registered within such time and in such manner as may be specified in the regulations 
made in this behalf.]  

CHAPTER II 

CORPORATION, STANDING COMMITTEE AND MEDICAL BENEFIT COUNCIL 

3. Establishment of Employees’ State Insurance Corporation.—(1) With effect from such date as 
the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be 
established  for  the  administration  of  the  scheme  of  Employees’  State  Insurance  in  accordance  with  the 
provisions of this Act a Corporation to be known as the Employees’ State Insurance Corporation. 

(2)  The  Corporation  shall  be  a  body  corporate  by  the  name  of  Employees’  State  Insurance 
Corporation having perpetual succession and a common seal and shall by the said name sue and be sued.  

4.  Constitution  of  Corporation.—The  Corporation  shall  consist  of  the  following  members, 

namely:— 

3[(a) a Chairman to be 4[appointed] by the Central Government; 

(b) a Vice-Chairman to be 4[appointed] by the Central Government;] 

(c) not more than five persons to be 4[appointed] by the Central Government 5***; 

(d)  one  person  each  representing  each  of  the  6[  7[States]  in  which  this  Act  is  in  force]  to  be 

4[appointed] by the State Government concerned; 

(e) one person to be 4[appointed] by the Central Government to represent the 8[Union territories]; 

(f)  9[ten]  persons  representing  employers  to  be  4[appointed]  by  the  Central  Government  in 
consultation  with  such  organisations  of  employers  as  may  be  recognised  for  the  purpose  by  the 
Central Government; 

(g)  9[ten]  persons  representing  employees  to  be  4[appointed]  by  the  Central  Government  in 
consultation  with  such  organisations  of  employees  as  may  be  recognised  for  the  purpose  by  the 
Central Government; 

(h)  two  persons  representing  the  medical  profession  to  be  4[appointed]  by  the  Central 
Government in consultation with such organisations of medical practitioners as may be recognised for 
the purpose by the Central Government; 10***  

11[(i)  three  members  of  Parliament  of  whom  two  shall  be  members  of  the  House  of  the  People 
(Lok Sabha) and one shall be a member of the Council of States (Rajya Sabha) elected respectively 
by the members of the House of the People and the members of the Council of States; and 

(j) the Director General of the Corporation, ex officio.]  

1. Subs. by Act 44 of 1966, s. 2, for clause (24) (w.e.f. 28-1-1968). 
2. Ins. by s. 3, ibid. (w.e.f. 28-1-1968). 
3. Subs. by s. 4, ibid., for clauses (a) and (b) (w.e.f. 17-6-1967). 
4. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989). 
5.  The  words  “of  whom  at  least  three  shall  be  officials  of  the  Central  Government”  omitted  by  Act  44  of  1966,  s.  4               

(w.e.f. 17-6-1967). 

6. Subs. by Act 53 of 1951, s. 4, for “Part A States” (w.e.f. 6-10-1951). 
7. Subs. by the A.O. (No. 3) 1956, for “Part A States and B States”. 
8. Subs., ibid.  for “Part C States”. 
9. Subs. by Act 29 of 1989, s. 5, for “five” (w.e.f. 20-10-1989). 
10. The word “and” omitted by Act 44 of 1966, s. 4 (w.e.f. 17-6-1967). 
11. Subs. by s. 4, ibid., for clause (i) (w.e.f. 17-6-1967). 

10 

 
                                                           
5.  Term  of  office  of  members  of  the  Corporation.—(1)  Save  as  otherwise  expressly  provided  in 
this Act, the term of office of members of the Corporation, other than 1[the members referred to in clauses 
(a), (b), (c), (d) and (e) of section 4 and the ex officio member,] shall be four years commencing from the 
date on which their 2[appointment] or election is notified: 

Provided that a member of the Corporation shall, notwithstanding the expiry of the said period of four 

years, continue to hold office until the 2[appointment] or election of his successor is notified.  

(2) The members of the Corporation referred to in clauses 3[(a), (b), (c), (d) and (e)] of section 4 shall 

hold office during the pleasure of the Government 4[appointing] them. 

6.  Eligibility  for  re-appointment  or  re-election.—An  outgoing  member  of  the  Corporation,  the 
Standing Committee, or the Medical Benefit Council shall be eligible for 5[re-appointment] or re-election 
as the case may be.  

6[7. Authentication of orders, decisions, etc.—All orders and decisions of the Corporation shall be 
authenticated by the signature of the Director General of the Corporation and all other instruments issued 
by the Corporation shall be authenticated by the signature of the Director General or such other officer of 
the Corporation as may be authorised by him.]  

8.  Constitution  of  Standing  Committee.—A  Standing  Committee  of  the  Corporation  shall  be 

constituted from among its members, consisting of— 

(a) a Chairman, 7[appointed] by the Central Government; 

(b) three members of the Corporation, 8[ 7[appointed] by the Central Government];  

9[(bb)  three  members  of  the  Corporation  representing  such  three  State  Governments  thereon  as 

the Central Government may, by notification in the Official Gazette, specify from time to time;] 

(c) 10[eight] members elected by the Corporation as follows:— 

11*   

*  

*  

*  

* 

(ii) 12[three] members from among the members of the Corporation representing employers; 

(iii) 12[three] members from among the members of the Corporation representing employees; 

(iv)  one  member  from  among  the  members  of  the  Corporation  representing  the  medical 

profession; and 

(v) one member from among the members of the Corporation elected by 13[Parliament];  

14[(d) the Director General of the Corporation, ex officio.]  

9. Term of office of members of Standing Committee.—(1) Save as otherwise expressly provided 
in this Act, the term of office of a member of the Standing Committee, other than a member referred to in 
clause  (a)  or  15[clause  (b)  or  clause  (bb)]  of  section  8,  shall  be  two  years  from  the  date  on  which  his 
election is notified: 

1. Subs. by Act 44 of 1966, s. 5, for certain words (w.e.f. 17-6-1967). 
2. Subs. by Act 29 of 1989, s. 4, for “nomination” (w.e.f. 20-10-1989). 
3. Subs. by Act 44 of 1966, s. 5, for “(c), (d) and (e)” (w.e.f. 17-6-1967). 
4. Subs. by Act 29 of 1989, s. 4, for “nominating” (w.e.f. 20-10-1989). 
5. Subs. by s. 4, ibid., for “renomination” (w.e.f. 20-10-1989). 
6. Subs. by Act 44 of 1966, s. 6, for section 7 (w.e.f. 17-6-1967). 
7. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989). 
8. Subs. by Act 44 of 1966, s. 7, for certain words (w.e.f. 17-6-1967). 
9. Ins. by Act 53 of 1951, s. 5 (w.e.f. 6-10-1951). 
10. Subs. by Act 44 of 1966, s. 7, for “six” (w.e.f. 17-6-1967). 
11. Omitted by Act 53 of 1951, s. 5 (w.e.f. 6-10-1951) 
12. Subs. by Act 44 of 1966, s. 7, for “two”  (w.e.f. 17-6-1967). 
13. Subs. by the A.O. 1950, for “the Central Legislature”. 
14. Ins. by Act 44 of 1966, s. 7 (w.e.f. 17-6-1967). 
15. Subs. by Act 53 of 1951, s. 6, for “clause (b)” (w.e.f. 6-10-1951). 

11 

 
 
 
 
 
 
 
                                                           
Provided  that  a  member  of  the  Standing  Committee  shall,  notwithstanding  the  expiry  of  the  said 

period of two years, continue to hold office until the election of his successor is notified:  

Provided further that a member of the Standing Committee shall cease to hold office when he ceases 

to be a member of the Corporation.  

(2) A member of the Standing Committee referred to in clause (a) or  1[clause (b) or clause (bb)] of 

section 8 shall hold office during the pleasure of the Central Government.  

10.  Medical  Benefit  Council.—(1)  The  Central  Government  shall  constitute  a  Medical  Benefit 

Council consisting of— 

2[(a) the Director General, the Employees’ State Insurance Corporation, ex officio as Chairman;  
(b) a Director-General, Health Services, ex officio, as Co-Chairman;]  

(c) the Medical Commissioner of the Corporation, ex officio;  
(d) one member each representing each of the  3[ 4[States (other than Union territories)] in which 

this Act is in force] to be 5[appointed] by the State Government concerned;  

(e)  three  members  representing  employers  to  be  5[appointed]  by  the  Central  Government  in 
consultation  with  such  organisations  of  employers  as  may  be  recognised  for  the  purpose  by  the 
Central Government;  

(f)  three  members  representing  employees  to  be  5[appointed]  by  the  Central  Government  in 
consultation  with  such  organisations  of  employees  as  may  be  recognised  for  the  purpose  by  the 
Central Government; and  

(g)  three  members,  of  whom  not  less  than  one  shall  be  a  woman,  representing  the  medical 
profession, to be 5[appointed] by the Central Government in consultation with such organisations  of 
medical practitioners as may be recognised for the purpose by the Central Government.  

(2) Save as otherwise expressly provided in this Act, the term of office of a member of the Medical 
Benefit Council, other than a member referred to in any of the clauses (a) to (d) of sub-section (1), shall 
be four years from the date on which his 6[appointment] is notified:  

7[Provided that a member of the Medical Benefit Council shall, notwithstanding the expiry of the said 

period of four years continue to hold office until the 6[appointment] of his successor is notified.]  

(3)  A  member  of  the  Medical  Benefit  Council  referred  to  in  clauses  (b)  and  (d)  of  sub-section  (1) 

shall hold office during the pleasure of the Government 8[appointing] him.  

11.  Resignation  of  membership.—A  member  of  the  Corporation,  the  Standing  Committee  or  the 
Medical Benefit Council may resign his office by notice in writing to the Central Government and his seat 
shall fall vacant on the acceptance of the resignation by that Government.  

12. Cessation of membership.—9[(1)] A member of the Corporation, the Standing Committee or the 
Medical Benefit Council shall cease to be a member of that body if he fails to attend three consecutive 
meetings thereof: 

Provided that the Corporation, the Standing Committee  or the Medical Benefit Council, as the case 
may be, may, subject to rules made by the Central Government in this behalf, restore him to membership. 

10[(2) Where in the opinion of the Central Government any person 5[appointed] or elected to represent 
employers,  employees  or  the  medical  profession  on  the  Corporation,  the  Standing  Committee  or  the 

1. Subs. by Act 53 of 1951, s. 6, for “clause (b)” (w.e.f. 6-10-1951). 
2. Subs. by Act 18 of 2010, s. 4, for sub-clauses (a) and (b) (w.e.f. 1-6-2010). 
3. Subs. by Act 53 of 1951, s. 7, for “Part A States” (w.e.f. 6-10-1951). 
4. Subs. by the A.O. (No. 3) 1956, for “Part A States or Part B States”. 
5. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989). 
6. Subs. by s. 4, ibid., for “nomination” (w.e.f. 20-10-1989). 
7. Added by Act 44 of 1966, s. 8 (w.e.f. 17-6-1967). 
8. Subs. by Act 29 of 1989, s. 4, for “nominating” (w.e.f. 20-10-1989). 
9. Section 12 re-numbered as sub-section (1) thereof by Act 53 of 1951, s. 8 (w.e.f. 6-10-1951). 
10. Ins. by s. 8, ibid. (w.e.f. 6-10-1951). 

12 

 
                                                           
Medical Benefit Council, as the case may be, has ceased to represent such employers, employees or the 
medical profession, the Central Government may, by notification in the Official Gazette, declare that with 
effect  from  such  date  as  may  be  specified  therein  such  person  shall  cease  to  be  a  member  of  the 
Corporation, the Standing Committee or the Medical Benefit Council, as the case may be.]  

1[(3) A person referred to in clause (i) of section 4 shall cease to be a member on becoming a Minister 
or Speaker or Deputy Speaker of the House of the People or Deputy Chairman of the Council of States or 
when he ceases to be a member of Parliament.] 

13. Disqualification.—A person shall be disqualified for being chosen as or for being a member of 

the Corporation, the Standing Committee or the Medical Benefit Council— 

(a) if he is declared to be of unsound mind by a competent Court; or  
(b) if he is an undischarged insolvent; or  
(c) if he has directly or indirectly by himself or by his partner any interest in a subsisting contract 
with, or any work being done for, the Corporation except as a medical practitioner or as a shareholder 
(not being a Director) of a company; or  

(d)  if  before  or  after  the  commencement  of  this  Act,  he  has  been  convicted  of  an  offence 

involving moral turpitude.  
14.  Filling  of  vacancies.—(1)  Vacancies  in  the  office  of  2[appointed]  or  elected  members  of  the 
Corporation, the Standing Committee and the Medical Benefit Council shall be filled by  3[appointment] 
or election, as the case may be. 

(2)  A  member  of  the  Corporation,  the  Standing  Committee  or  the  Medical  Benefit  Council 
2[appointed]  or  elected  to  fill  a  casual  vacancy  shall  hold  office  only  so  long  as  the  member  in  whose 
place  he  is  2[appointed]  or  elected  would  have  been  entitled  to  hold  office  if  the  vacancy  had  not 
occurred.  

15. Fees and allowances.—Members of the Corporation, the Standing Committee and the Medical 
Benefit  Council  shall  receive  such  fees  and  allowances  as  may  from  time  to  time  be  prescribed  by  the 
Central Government.  

16.  Appointment  of  a  Director  General  and  a  Financial  Commissioner.—4[(1)  The  Central 
Government  may,  in  consultation  with  the  Corporation,  appoint  a  Director  General  and  a  Financial 
Commissioner.] 

(2) The Director General shall be the Chief Executive Officer of the Corporation. 

(3) 5[The  Director  General  and  The  Financial  Commissioner]  shall  be  whole-time  officers  of  the 
Corporation and shall not undertake any work unconnected with their office without the sanction of the 
Central Government 6[and of the Corporation]. 

(4) 5[The  Director  General  or  the  Financial  Commissioner]  shall  hold  office  for  such  period,  not 
exceeding five years, as may be specified in the order appointing him. An outgoing 5[the Director General 
or Financial Commissioner] shall be eligible for reappointment if he is otherwise qualified. 

(5)  5[The Director General or the Financial Commissioner] shall receive such salary and allowances 

as may be prescribed by the Central Government. 

(6) A person shall be disqualified from being appointed as or for being 5[the Director General or the 

Financial Commissioner] if he is subject to any of the disqualifications specified in section 13. 

(7)  The  Central  Government  may  at  any  time  remove 5[the  Director  General  or  the  Financial 
Commissioner]  from  office  and  shall  do  so  if  such  removal  is  recommended  by  a  resolution  of  the 

1. Subs. by Act 18 of 2010, s. 5, for “sub-section (3)” (w.e.f. 1-6-2010). 
2. Subs. by Act 29 of 1989, s. 4, for “nominated” (w.e.f. 20-10-1989). 
3. Subs. by s. 4, ibid., for “nomination” (w.e.f. 20-10-1989). 
4. Subs. by s. 6, ibid., for sub-section (1) (w.e.f. 20-10-1989). 
5. Subs. by s. 6, ibid., for “The Principal Officers” (w.e.f. 20-10-1989). 
6. Ins. by Act 44 of 1966, s. 10 (w.e.f. 17-6-1967). 

13 

 
                                                           
Corporation passed at a special meeting called for the purpose and supported by the votes of not less than 
two-thirds of the total strength of the Corporation. 

17.  Staff.—(1)  The  Corporation  may  employ  such  other  staff  of  officers  and  servants  as  may  be 
necessary for the efficient transaction of its business provided that the sanction of the Central Government 
shall  be  obtained  for  the  creation  of  any  post  1[the  maximum  monthly  salary  of  which  2[exceeds  such 
salary as may be prescribed by the Central Government].]  

3[(2) (a) The method of recruitment, salary and allowances, discipline and other conditions of service 
of the members of the staff of the Corporation shall be such as may be specified in the regulations made 
by the Corporation in accordance with the rules and orders applicable to the officers and employees of the 
Central Government drawing corresponding scales of pay: 

Provided that where the Corporation is of the opinion that it is necessary to make a departure from the 
said  rules  or  orders  in  respect  of  any  of  the  matters  aforesaid,  it  shall  obtain  the  prior  approval  of  the 
Central Government: 

4[Provided further that this sub-section shall not apply to appointment of consultants and specialists in 

various fields appointed on contract basis.] 

(b) In determining the corresponding scales of pay of the members of the staff under clause (a), the 
Corporation  shall  have  regard  to  the  educational  qualifications,  method  of  recruitment,  duties  and 
responsibilities of such officers and employees under the Central Government and in case of any doubt, 
the Corporation shall refer the matter to the Central Government whose decision thereon shall be final.]  

(3) Every appointment to 5[posts 6[(other than medical posts)] corresponding to 7[Group A and Group 
B] posts under the Central Government] shall be made in consultation with the  8[Union] Public Service 
Commission: 

Provided  that  this  sub-section  shall  not  apply  to  an  officiating  or  temporary  appointment  for  9[a 

period] not exceeding one year:  

10[Provided further that any such officiating or temporary appointment shall not confer any claim for 
regular  appointment  and  the  services  rendered  in  that  capacity  shall  not  count  towards  seniority  or 
minimum qualifying service specified in the regulations for promotion to next higher grade.]  

11[(4) If any question arises whether a post corresponds to a  7[Group A and Group B] post under the 
Central Government, the question shall be referred to that Government whose decision thereon shall be 
final.]  

18. Powers of the Standing Committee.—(1) Subject to the general superintendence and control of 
the Corporation, the Standing Committee shall administer the affairs of the Corporation and may exercise 
any of the powers and perform any of the functions of the Corporation. 

(2)  The  Standing  Committee  shall  submit  for  the  consideration  and  decision  of  the  Corporation  all 

such cases and matters as may be specified in the regulations made in this behalf.  

(3) The Standing Committee may, in its discretion, submit any other case or matter for the decision of 

the Corporation.  

19.  Corporation’s  power  to  promote  measures  for  health,  etc.,  of  insured  persons.—The 
Corporation  may,  in  addition  to the  scheme  of  benefits  specified in this  Act,  promote  measures for  the 

1. Subs. by Act 38 of 1975, s. 3, for certain words (w.e.f. 1-9-1975). 
2. Subs by Act 29 of 1989, s. 7, for “exceeds two thousand and two hundred fifty rupees” (w.e.f. 1-2-1991). 
3. Subs. by s. 7, ibid., for sub-section (2) (w.e.f. 8-11-1989). 
4.  Ins. by Act 18 of 2010, s. 6 (w.e.f. 1-6-2010). 
5. Subs. by Act 44 of 1966, s. 11, for certain words (w.e.f. 17-6-1967). 
6. Ins. by Act 29 of 1989, s. 7 (w.e.f. 16-5-1990). 
7. Subs. by Act 45 of 1984, s. 3, for “Class I or Class II” (w.e.f. 27-1-1985). 
8. Subs. by the A.O. 1950, for “Federal”. 
9. Subs. by Act 29 of 1989, s. 7, for “an aggregate period” (w.e.f. 20-10-1989). 
10. Ins. by  s. 7, ibid. ( (w.e.f. 20-10-1989) 
11. Ins. by Act 44 of 1966, s. 11 (w.e.f. 17-6-1967). 

14 

 
                                                           
improvement of the health and welfare of insured persons and for the rehabilitation and re-employment of 
insured persons who have been disabled or injured and may incur in respect of such measures expenditure 
from the funds of the Corporation within such limits as may be prescribed by the Central Government.  

20. Meetings of Corporation, Standing Committee and Medical Benefit Council.—Subject to any 
rules  made  under  this  Act,  the  Corporation,  the  Standing  Committee  and  the  Medical  Benefit  Council 
shall meet at such times and places and shall observe such rules or procedure in regard to transaction of 
business at their meetings as may be specified in the regulations made in this behalf. 

21.  Supersession  of  the  Corporation,  and  Standing  Committee.—(1)  If  in  the  opinion  of  the 
Central Government, the Corporation or the Standing Committee persistently makes default in performing 
the duties imposed on it by or under this Act or abuses its powers, that Government may, by notification 
in the Official Gazette, supersede the Corporation, or in the case of the Standing Committee, supersede, in 
consultation with the Corporation, the Standing Committee: 

Provided that before issuing a notification under this sub-section the Central Government shall give a 
reasonable opportunity to the Corporation or the Standing Committee, as the case may be, to show cause 
why  it  should  not  be  superseded  and  shall  consider  the  explanations  and  objections,  if  any,  of  the 
Corporation or the Standing Committee, as the case may be. 

(2)  Upon  the  publication  of  a  notification under  sub-section (1)  superseding  the  Corporation  or  the 
Standing Committee, all the members of the Corporation or the Standing Committee, as the case may be, 
shall, as from the date of such publication, be deemed to have vacated their offices. 

(3)  When  the  Standing  Committee  has  been  superseded,  a  new  Standing  Committee  shall  be 

immediately constituted in accordance with section 8. 

(4) When the Corporation has been superseded, the Central Government may— 

(a)  immediately  1[appoint]  or  cause  to  be  2[appointed]  new  members  to  the  Corporation  in 

accordance with section 4 and may constitute a new Standing Committee under section 8; 

(b)  in  its  discretion,  appoint  such  agency,  for  such  period  as  it  may  think  fit,  to  exercise  the 
powers and perform the functions of the Corporation and such agency shall be competent to exercise 
all the powers and perform all the functions of the Corporation. 

(5) The Central Government shall cause a full report of any action taken under this section and the 
circumstances leading to such action to be laid before 3[Parliament] at the earliest opportunity and in any 
case  not  later  than  three  months  from  the  date  of  the  notification  superseding  the  Corporation  or  the 
Standing Committee, as the case may be.  

22. Duties of Medical Benefit Council.—The Medical Benefit Council shall— 

(a)  advise  4[the  Corporation  and  the  Standing  Committee]  on  matters  relating  to  the 
administration  of  medical  benefit,  the  certification  for  purposes  of  the  grant  of  benefits  and  other 
connected matters;  

(b) have such powers and duties of investigation as may be prescribed in relation to complaints 

against medical practitioners in connection with medical treatment and attendance; and  

(c)  perform  such  other  duties  in  connection  with  medical  treatment  and  attendance  as  may  be 

specified in the regulations.  

23.  Duties  of  Principal  Officers.—The  5[Director  General  and  the  Financial  Commissioner]  shall 
exercise such powers and discharge such duties as may be prescribed. They shall also perform such other 
functions as may be specified in the regulations.  

1. Subs. by Act 29 of 1989, s. 4, “nominate” (w.e.f. 20-10-1989). 
2. Subs. by s. 4, ibid., “nominated” (w.e.f. 20-10-1989). 
3. Subs. by A.O. 1950, for “the Central Legislature”. 
4.  Subs.  by  Act  53  of  1951,  s.  9,  for  “the  Corporation,  the  Standing  Committee  and  the  Medical  Commissioner”                     

(w.e.f. 6-10-1951). 

5. Subs. by Act 29 of 1989, s. 8, for “Principal Officers” (w.e.f. 20-10-1989). 

15 

 
                                                           
24. Acts of Corporation, etc., not invalid by reason of defect in constitution, etc.—No act of the 
Corporation, the  Standing Committee  or  the  Medical  Benefit  Council  shall  be deemed  to  be  invalid by 
reason  of  any  defect  in  the  constitution  of  the  Corporation,  the  Standing  Committee  or  the  Medical 
Benefit Council, or on the ground that any member thereof was not entitled to hold or continue in office 
by reason of any disqualification or of any irregularity in his  1[appointment] or election, or by reason of 
such  act  having  been  done  during  the  period  of  any  vacancy  in  the  office  of  any  member  of  the 
Corporation, the Standing Committee or the Medical Benefit Council. 

25.  Regional  Boards,  Local  Committees,  Regional  and  Local  Medical  Benefit  Councils.—The 
Corporation may appoint Regional Boards, Local Committees and Regional and Local Medical Benefit 
Councils in such areas and in such manner, and delegate to them such powers and functions, as may be 
provided by the regulations. 

CHAPTER III 

FINANCE AND AUDIT 

26.  Employees’  State  Insurance  Fund.—(1)  All  contributions  paid  under  this  Act  and  all  other 
moneys  received  on  behalf  of  the  Corporation  shall  be  paid  into  a  fund  called  the  Employees’  State 
Insurance Fund which shall be held and administered by the Corporation for the purposes of this Act. 

(2)  The  Corporation  may  accept  grants,  donations  and  gifts  from  the  Central  or  any  State 
Government, 2*** local authority, or any individual or body whether incorporated or not, for all or any of 
the purposes of this Act.  

3[(3) Subject to the other provisions contained in this Act and to any rules or regulations made in this 
behalf, all moneys accruing or payable to the said Fund shall be paid into the Reserve Bank of India or 
such  other  bank  as  may  be  approved  by  the  Central  Government  to  the  credit  of  an  account  styled  the 
account of the Employees’ State Insurance Fund.]  

(4)  Such  account  shall  be  operated  on  by  such  officers  as  may  be  authorised  by  the  Standing 

Committee with the approval of the Corporation.  

27.  [Grant  by  the  Central  Government.]  Omitted  by  the  Employees’  State  Insurance  (Amendment) 

Act, 1966 (44 of 1966) s. 12 (w.e.f. 17-6- 1967).  

28. Purposes for which the Fund may be expended.—Subject to the provisions of this Act and of 
any rules made by the Central Government in that behalf, the Employees’ State Insurance Fund shall be 
expended only for the following purposes, namely:— 

(i) payment of benefits and provision of medical treatment and attendance to insured persons and, 
where the medical benefit is extended to their families, the provision of such medical benefit to their 
families,  in  accordance  with  the  provisions  of  this  Act  and  defraying  the  charges  and  costs  in 
connection therewith; 

(ii) payment of fees and allowances to members of the Corporation, the Standing Committee and 
the  Medical  Benefit  Council,  the  Regional  Boards,  Local  Committees  and  Regional  and  Local 
Medical Benefit Councils; 

(iii)  payment  of  salaries,  leave  and  joining  time  allowances,  travelling  and  compensatory 
allowances,  gratuities  and  compassionate  allowances,  pensions,  contributions  to  provident  or  other 
benefit  fund  of  officers  and  servants  of  the  Corporation  and  meeting  the  expenditure  in  respect  of 
offices and other services set up for the purpose of giving effect to the provisions of this Act; 

(iv)  establishment  and  maintenance  of  hospitals,  dispensaries  and  other  institutions  and  the 
provision  of  medical  and  other  ancillary  services  for  the  benefit  of  insured  persons  and,  where  the 
medical benefit is extended to their families, their families; 

1. Subs. by Act 39 of 1989, s. 4, for “nomination” (w.e.f. 20-10-1989). 
2. The words and letter “Part B State,” omitted by Act 53 of 1951, s. 10 (w.e.f. 6-10-1951). 
3. Subs. by s. 10, ibid., for sub-section (3) (w.e.f. 6-10-1951). 

16 

 
                                                           
(v) payment of contributions to any State Government, 1*** local authority or any private body or 
individual,  towards  the  cost  of  medical  treatment  and  attendance  provided  to  insured  persons  and, 
where  the  medical  benefit  is  extended  to  their  families,  their  families,  including  the  cost  of  any 
building and equipment, in accordance with any agreement entered into by the Corporation; 

(vi) defraying the cost (including all expenses) of auditing the accounts of the Corporation and of 

the valuation of its assets and liabilities; 

(vii) defraying the cost (including all expenses) of the Employees’ Insurance Courts set up under 

this Act; 

(viii)  payment  of  any  sums  under  any  contract  entered  into  for  the  purposes  of  this  Act  by  the 
Corporation or the Standing Committee or by any officer duly authorized by the Corporation or the 
Standing Committee in that behalf; 

(ix)  payment  of  sums  under  any  decree,  order  or  award  of  any  Court  or  Tribunal  against  the 
Corporation or any of its officers or servants for any act done in the execution of his duty or under a 
compromise or settlement of any suit or other legal proceeding or claim instituted or made against the 
Corporation; 

(x)  defraying  the  cost  and  other  charges  of  instituting  or  defending  any  civil  or  criminal 

proceedings arising out of any action taken under this Act; 

(xi) defraying expenditure, within the limits prescribed, on measures for the improvement of the 
health  welfare  of  insured  persons  and  for  the  rehabilitation  and  re-employment  of  insured  persons 
who have been disabled or injured; and 

(xii) such other purposes as may be authorized by the Corporation with the previous approval of 

the Central Government. 

2[28A.  Administrative  expenses.—The  types  of  expenses  which  may  be  termed  as  administrative 
expenses and the percentage of the income of the Corporation which may be spent for such expenses shall 
be such as may be prescribed by the Central Government and the Corporation shall keep its administrative 
expenses within the limit so prescribed by the Central Government.]  

29.  Holding  of  property,  etc.—(1)  The  Corporation  may,  subject  to  such  conditions  as  may  be 
prescribed by the Central Government, acquire and hold property both movable and immovable, sell or 
otherwise transfer any movable or immovable property which  may have become vested in or have been 
acquired by it and do all things necessary for the purposes for which the Corporation is established. 

(2) Subject to such conditions as may be prescribed by the Central Government, the Corporation may 
from  time  to  time  invest  any  moneys  which  are  not  immediately  required  for  expenses  properly 
defrayable  under  this  Act  and  may,  subject  as  aforesaid,  from  time  to  time  re-invest  or  realise  such 
investments. 

(3) The Corporation may, with the previous sanction of the Central Government and on such terms as 

may be prescribed by it, raise loans and take measures for discharging such loans.  

(4) The Corporation may constitute for the benefit of its staff or any class of them, such provident or 

other benefit fund as it may think fit.  

30. Vesting of the property in the Corporation.—All property acquired before the establishment of 
the  Corporation  shall  vest  in  the  Corporation  and  all  income  derived  and  expenditure  incurred  in  this 
behalf shall be brought into the books of the Corporation.  

31. [Expenditure by Central Government to be treated as a loan.] Omitted by the Employees’ State 

Insurance (Amendment) Act, 1966 (44 of 1966). s. 12 (w.e.f. 17-6-1967).  

32.  Budget  estimates.—The  Corporation  shall  in  each  year  frame  a  budget  showing  the  probable 
receipts and the expenditure which it proposes to incur during the following year and shall submit a copy 

1. The words and letter “Part B State” omitted by Act 53 of 1951, s. 11 (w.e.f. 6-10-1951). 
2. Ins. by Act 29 of 1989, s. 9 (w.e.f. 1-5-1997). 

17 

 
                                                           
of the budget for the approval of the Central Government before such date as may be fixed by it in that 
behalf.  The  budget  shall  contain  provisions  adequate  in  the  opinion  of  the  Central  Government  for  the 
discharge of the liabilities incurred by the Corporation and for the maintenance of a working balance.  

33.  Accounts.—The  Corporation  shall  maintain  correct  accounts  of  its  income  and  expenditure  in 

such form and in such manner as may be prescribed by the Central Government.  

1[34. Audit.—(1) The accounts of the Corporation shall be audited annually by the Comptroller and 
Auditor-General  of  India  and  any  expenditure  incurred  by  him  in  connection  with  such  audit  shall  be 
payable by the Corporation to the Comptroller and Auditor-General of India. 

(2)  The  Comptroller  and  Auditor-General  of  India  and  any  person  appointed  by  him  in  connection 
with the audit of the accounts of the Corporation shall have the same rights and privileges and authority in 
connection with such audit as the Comptroller and Auditor-General has, in connection with the audit of 
Government accounts and, in particular, shall have the right to demand the production of books, accounts, 
connected vouchers and other documents and papers and to inspect any of the offices of the Corporation.  

(3) The accounts of the Corporation as certified by the Comptroller and Auditor-General of India or 
any other person appointed by him in this behalf together with the audit report thereon shall be forwarded 
to the Corporation which shall forward the same to the Central Government along with its comments on 
the report of the Comptroller and Auditor-General.] 

35. Annual report.—The Corporation shall submit to the Central Government an annual report of its 

work and activities.  

36.  Budget,  audited  accounts  and  the  annual  report  to  be  placed  before  Parliament.—The 
annual report, the audited accounts of the Corporation 2[together with the 3[the report of the Comptroller 
and  Auditor-General  of  India  thereon  and  the  comments  of  the  Corporation  on  such  report]  under               
section  34]  and  the  budget  as  finally  adopted  by  the  Corporation  shall  be  placed  before  4[Parliament] 
5***.  

37. Valuation of assets and liabilities.—The Corporation shall, at intervals of  6[three years], have a 
valuation  of  its  assets  and  liabilities  made  by  a  valuer  appointed  with  the  approval  of  the  Central 
Government: 

Provided that it shall be open to the Central Government to direct a valuation to be made at such other 

times as it may consider necessary. 

CHAPTER IV 

CONTRIBUTIONS 

38. All employees to be insured.—Subject to the provisions of this Act, all employees in factories, 

or establishments to which this Act applies shall be insured in the manner provided by this Act.  

39.  Contributions.—(1)  The  contribution  payable  under  this  Act  in  respect  of  an  employee  shall 
comprise  contribution  payable  by  the  employer  (hereinafter  referred  to  as  the  employer’s  contribution) 
and  contribution  payable  by  the  employee  (hereinafter  referred  to  as  the  employee’s  contribution)  and 
shall be paid to the Corporation.  

7[(2) The contributions shall be paid at such rates as may be prescribed by the Central Government:  

Provided that the rates so prescribed shall not be more than the rates which were in force immediately 

before the commencement of the Employees’ State Insurance (Amendment) Act, 1989 (29 of 1989).]  

1. Subs. by Act 29 of 1989, s. 10, for section 34 (w.e.f. 20-10-1989). 
2. Ins. by Act 44 of 1986, s. 13 (w.e.f. 17-6-1967). 
3. Subs. by Act 29 of 1989, s. 11, for “auditor's report thereon” (w.e.f. 20-10-1989). 
4. Subs. by the A.O. 1950, for “the Central Legislature”. 
5. The words “and published in the Gazette of India” omitted by Act 29 of 1989, s. 11 (w.e.f. 20-10-1989). 
6. Subs. by Act 18 of 2010, s. 7, for “five years” (w.e.f. 1-6-2010). 
7. Subs. by Act 29 of 1989, s. 12, for sub-section (2) (w.e.f. 1-2-1991). 

18 

 
 
 
                                                           
1[(3) The wage period in relation to an employee shall be the unit in respect of which all contributions 

shall be payable under this Act.] 

(4) The contributions payable in respect of each 2[wage period] shall ordinarily for due on the last day 
of the  2[wage period] and where an employee is employed for part of the  2[wage period] or is employed 
under two or more employers during the same 2[wage period] the contribution shall fall due on such days 
as may be specified in the regulations.  

3[(5) (a) If any contribution payable under this Act is not paid by the principal employer on the date 
on which such contribution has become due, he shall be liable to pay simple interest at the rate of twelve 
per cent. per annum or at such higher rate as may be specified in the regulation till the date of its actual 
payment: 

Provided that higher interest specified in the regulations shall not exceed the lending rate of interest 

charged by any scheduled bank.  

(b) Any interest recoverable under clause (a) may be recovered as an arrear of land revenue or under 

section 45C to section 45-I.  

Explanation.—In this sub-section, “scheduled bank” means a bank for the time being included in the 

Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).]  

40.  Principal  employer  to  pay  contributions  in  the  first  instance.—(1)  The  principal  employer 
shall pay in respect of every employee, whether directly employed by him or by or through an immediate 
employer, both the employer’s contribution and the employee’s contribution. 

(2) Notwithstanding anything contained in any other enactment but subject to the provisions of this 
Act and the regulations, if any, made thereunder, the principal employer shall, in the case of an employee 
directly employed by him (not being an exempted employee), be entitled to recover from the employee 
the employee’s contribution by deduction from his wages and not otherwise: 

Provided that no such deduction shall be made from any wages other than such as relate to the period 
or part of the period in respect of which the contribution is payable, or in excess of the sum representing 
the employee’s contribution for the period. 

(3)  Notwithstanding  any  contract to  the  contrary,  neither the  principal  employer  nor  the  immediate 
employer shall be entitled to deduct the employer’s contribution from any wages payable to an employee 
or otherwise to recover it from him. 

(4) Any sum deducted by the principal employer from wages under this Act shall be deemed to have 
been entrusted to him by the employee for the purpose of paying the contribution in respect of which it 
was deducted. 

(5) The principal employer shall bear the expenses of remitting the contributions to the Corporation.  

41. Recovery of contribution from immediate employees.—(1) A principal employer, who has paid 
contribution in respect of an employee employed by or through an immediate employer, shall be entitled 
to recover the amount of the contribution so paid (that is to say the employer’s contribution as well as the 
employee’s  contribution,  if  any)  from  the  immediate  employer,  either  by  deduction  from  any  amount 
payable  to  him  by  the  principal  employer  under  any  contract,  or  as  a  debt  payable  by  the  immediate 
employer.  

4[(1A) The immediate employer shall maintain a register of employees employed by or through him 
as provided in the regulations and submit the same to the principal employer before the settlement of any 
amount payable under sub-section (1).] 

1. Subs. by Act 45 of 1984, s. 4, for sub-section (3) (w.e.f. 27-1-1985). 
2. Subs. by s. 4, ibid., for “week” (w.e.f. 27-1-1985). 
3. Ins. by Act 29 of 1989, s. 12 (w.e.f. 20-10-1989). 
4. Ins. by s. 13, ibid. (w.e.f. 1-2-1991). 

19 

 
                                                           
(2) In the case referred to in sub-section (1), the immediate employee shall be entitled to recover the 
employee’s contribution from the employee employed by or through  him by deduction from wages and 
not otherwise, subject to the conditions specified in the proviso to sub-section (2) of section 40.  

1* 

* 

* 

* 

*  

42. General provisions as to payment of contributions.—(1) No employee’s contribution shall be 
payable  by  or  on  behalf  of  an  employee  whose  average  daily  wages  2[during  a  wage  period  are  below 
3[such wages as may be prescribed by the Central Government]]. 

Explanation.—The average daily wages of an employee shall be calculated  4[in such manner as may 

be prescribed by the Central Government.] 

(2) Contribution (both the employer’s contribution and the employee’s contribution) shall be payable 
by the principal employer for  each  5[wage period]  6[in respect of the whole or part of which wages are 
payable to the employee and not otherwise]. 

7* 

8*    

* 

* 

* 

* 

* 

* 

*  

*  

43.  Method  of  payment  of  contributions.—Subject  to  the  provisions  of  this  Act,  the  Corporation 
may make regulations for any matter relating or incidental to the payment and collection of contributions 
payable under this  Act  and  without  prejudice to the  generality  of  the foregoing  power such  regulations 
may provide for— 

(a) the manner and time of payment of contributions; 

(b) the payment of contributions by  means of adhesive or other stamps affixed to or impressed 
upon  books,  cards  or  otherwise  and  regulating  the  manner,  times  and  conditions  in,  at  and  under 
which, such stamps are to be affixed or impressed;  

9[(bb)  the  date  by  which  evidence  of  contributions  having  been  paid  is  to  be  received  by  the 

Corporation;] 

(c) the entry in or upon books or cards of particulars of contributions paid and benefits distributed 

in the case of the insured persons to whom such books or cards relate; and 

(d)  the  issue,  sale,  custody,  production,  inspection  and  delivery  of  books  or  cards  and  the 

replacement of books or cards which have been lost, destroyed or defaced.  

10[44. Employers to furnish returns and maintain registers in certain cases.—(1) Every principal 
and immediate employer shall submit to the Corporation or to such officer of the Corporation as it may 
direct such returns in such form and containing such particulars relating to persons employed by him or to 
any  factory  or  establishment  in  respect  of  which  he  is  the  principal  or  immediate  employer  as  may  be 
specified in regulations made in this behalf. 

(2)  Where  in  respect  of  any  factory  or  establishment  the  Corporation  has  reason  to  believe  that  a 
return should have been submitted under sub-section (1) but has not been so submitted, the Corporation 
may  require  any  person  in  charge  of  the  factory  or  establishment  to  furnish  such  particulars  as  it  may 
consider  necessary  for  the  purpose  of  enabling  the  Corporation  to  decide  whether  the  factory  or 
establishment is a factory or establishment to which this Act applies. 

1. The Explanation omitted by Act 44 of 1966, s. 14 (w.e.f. 28-1-1968). 
2. Subs. by Act 45 of 1984, s. 5, for “are below one rupee and fifty paise” (w.e.f. 27-1-1985). 
3. Subs. by Act 29 of 1989, s. 14, for “six rupees” (w.e.f. 1-2-1991). 
4. Subs. by s. 14, ibid., for “in such manner specified in the First Schedule” (w.e.f. 1-2-1991). 
5. Subs. by Act 45 of 1984, s. 5, for “week” (w.e.f. 27-1-1985). 
6. Subs. by Act 44 of 1966, s. 15, for “during the whole or part of which an employee is employed” (w.e.f. 28-1-1968). 
7. Omitted by Act 45 of 1984, s. 5 (w.e.f. 27-1-1985). 
8. Omitted by Act 44 of 1966, s. 15 (w.e.f. 28-1-1968). 
9. Ins. by s. 16, ibid. (w.e.f. 28-1-1968). 
10. Subs. by Act 53 of 1951, s. 12, for section 44 (w.e.f. 6-10-1951). 

20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(3) Every principal and immediate employer shall maintain such registers or records in respect of his 

factory or establishment as may be required by regulations made in this behalf.]  

45. 1[Social Security Officers], their functions and duties.—(1) The Corporation may appoint such 
persons as inspectors, as it thinks fit, for the purposes of this Act, within such local limits as it may assign 
to them.  

(2)  Any  2[Social  Security  Officer]  appointed  by  the  Corporation  under  sub-section  (1)  (hereinafter 
referred to as 2[Social Security Officer]), or other official of the Corporation authorised in this behalf by it 
may,  for  the  purposes  of  enquiring  into  the  correctness  of  any  of  the  particulars  stated  in  any  return 
referred to in section 44 or for the purpose of ascertaining whether any of the provisions of this Act has 
been complied with— 

(a)  require  any  principal  or  immediate  employer  to  furnish  to  him  such  information  as  he  may 

consider necessary for the purposes of this Act; or 

(b) at any reasonable time enter any office, establishment, factory or other premises occupied by 
such principal or immediate employer and require any person found in charge thereof to produce to 
such  2[Social Security Officer] or other official and allow him to examine such accounts, books and 
other documents relating to the employment of persons and payment of wages or to furnish to him 
such information as he may consider necessary; or 

(c)  examine,  with  respect  to  any  matter  relevant  to  the  purposes  aforesaid,  the  principal  or 
immediate employer, his agent or servant, or any person found in such factory, establishment, office 
or  other  premises,  or  any  person  whom  the  said  2[Social  Security  Officer]  or  other  official  has 
reasonable cause to believe to be or to have been an employee;  

3[(d)  make  copies  of,  or  take  extracts  from,  any  register,  account  book  or  other  document 

maintained in such factory, establishment, office or other premises; 

(e) exercise such other powers as may be prescribed.]  

(3)  An  2[Social  Security  Officer]  shall  exercise  such  functions  and  perform  such  duties  as  may  be 

authorized by the Corporation or as may be specified in the regulations.  

4[(4) Any officer of the Corporation authorised in this behalf by it may, carry out re-inspection or test 
inspection  of  the  records  and  returns  submitted  under  section  44  for  the  purpose  of  verifying  the 
correctness and quality of the inspection carried out by a Social Security Officer.] 

5[45A.  Determination  of  contributions  in  certain  cases.—(1)  Where  in  respect  of  a  factory  or 
establishment  no  returns,  particulars,  registers  or  records  are  submitted,  furnished  or  maintained  in 
accordance  with  the  provisions  of  section  44  or  any  2[Social  Security  Officer]  or  other  official  of  the 
Corporation referred to in sub-section (2) of section 45 is 6[prevented in any manner] by the principal or 
immediate  employer  or  any  other  person,  in  exercising  his  functions  or  discharging  his  duties  under 
section  45,  the  Corporation  may,  on  the  basis  of  information  available  to  it,  by  order,  determine  the 
amount of contributions payable in respect of the employees of that factory or establishment: 

7[Provided  that  no  such  order shall  be  passed  by  the Corporation unless  the  principal or  immediate 
employer or the person in charge of the factory or establishment has been given a reasonable opportunity 
of being heard.] 

1. Subs. by Act 18 of 2010, s. 8, for “Inspectors” (w.e.f. 1-6-2010). 
2. Subs. by s. 8, ibid., for “Inspector” (w.e.f. 1-6-2010). 
3. Ins. by Act 53 of 1961, s. 13 (w.e.f.  
4. Ins. by Act 18 of 2010, s. 8 (w.e.f. 1-6-2010). 
5. Ins. by Act 44 of 1966, s. 17 (w.e.f. 17-6-1967). 
6. Subs. by Act 29 of 1989, s. 15, for “obstructed” (w.e.f. 20-10-1989). 
7. Ins. by s. 15, ibid. (w.e.f. 20-10-1989). 

21 

 
 
 
                                                           
1[Provided  further  that  no  such  order  shall  be  passed  by  the  Corporation  in  respect  of  the  period 

beyond five years from the date on which the contribution shall become payable.] 

(2) An order made by the Corporation under sub-section (1) shall be sufficient proof of the claim of 
the Corporation under section 75 or for recovery of the amount determined by such order as an arrear of 
land revenue under section 45B 2[or the recovery under section 45C to section 45-I].  

3[45AA. Appellate authority.—1[If an employer is not satisfied with the order referred to in section 

45A, he may prefer an appeal to an appellate authority as may be provided by regulation, within sixty 
days of the date of such order after depositing twenty-five per cent. of the contribution so ordered or the 
contribution as per his own calculation, whichever is higher, with the Corporation: 

Provided that if the employer finally succeeds in the appeal, the Corporation shall refund such deposit 

to the employer together with such interest as may be specified in the regulation.] 

 45B. Recovery of contributions.—Any contribution payable under this Act may be recovered as an 

arrear of land revenue.]  

4[45C. Issue of certificate to the Recovery Officer.—(1) Where any amount is in arrear under this 
Act, the authorised officer may issue, to the Recovery Officer, a certificate under his signature specifying 
the amount of arrears and the Recovery Officer, on receipt of such certificate, shall proceed to recover the 
amount  specified  therein  from  the  factory  or  establishment  or,  as  the  case  may  be,  the  principal  or 
immediate employer by one or more of the modes mentioned below:— 

(a) attachment and sale of the movable or immovable property of the factory or establishment or, 

as the case may be, the principal or immediate employer;  
(b) arrest of the employer and his detention in prison; 
(c)  appointing  a  receiver  for  the  management  of  the  movable  or  immovable  properties  of  the 

factory or establishment or, as the case may be, the employer: 
Provided that the attachment and sale of any property under this section shall first be effected against 
the  properties  of  the  factory  or  establishment  and  where  such  attachment  and  sale  is  insufficient  for 
recovering the whole of the amount of arrears specified in the certificate, the Recovery Officer may take 
such  proceedings  against  the  property  of  the  employer  for  recovery  of  the  whole  or  any  part  of  such 
arrears. 

(2)  The  authorised  officer  may  issue  a  certificate  under  sub-section  (1)  notwithstanding  that 

proceedings for recovery of the arrears by any other mode have been taken.  

45D.  Recovery  officer  to  whom  certificate  is  to  be  forwarded.—(1)  The  authorised  officer  may 
forward the  certificate  referred  to  in  section  45C to the  Recovery  Officer  within  whose jurisdiction the 
employer— 

(a)  carries  on  his  business  or  profession  or  within  whose  jurisdiction  the  principal  place  of  his 

factory or establishment is situate; or 

(b) resides or any movable or immovable property of the factory or establishment or the principal 

or immediate employer is situate. 

(2) Where a factory or an establishment or the principal or immediate employer has property within 
the  jurisdiction  of  more  than  one  Recovery  Officers  and  the  Recovery  Officer  to  whom  a  certificate  is 
sent by the authorised officer— 

(a) is not able to recover the entire amount by the sale of the property, movable or immovable, 

within his jurisdiction; or 

(b) is of the opinion that, for the purpose of expediting or securing the recovery of the whole or 

any part of the amount, it is necessary so to do,  

1. Ins. by Act 18 of 2010, s. 9 (w.e.f. 1-6-2010). 
2. Added by Act 29 of 1989, s. 15 (w.e.f. 20-10-1989). 
3. Ins. by Act 18 of 2010, s. 10 (w.e.f. 1-6-2010).  
4. Ins. by Act 29 of 1989, s. 16 (w.e.f. 1-9-1991). 

22 

 
                                                           
 
he may send the certificate or, where only a part of the amount is to be recovered, a copy of the certificate 
certified in the manner prescribed by the Central Government and specifying the amount to be recovered 
to  the  Recovery  Officer  within  whose  jurisdiction  the  factory  or  establishment  or  the  principal  or 
immediate employer has property or the employer resides, and thereupon that Recovery Officer shall also 
proceed to recover the amount due under this section as if the certificate or the copy thereof had been the 
certificate sent to him by the authorised officer.  

45E.  Validity  of  certificate  and  amendment  thereof.—(1)  When  the  authorised  officer  issues  a 
certificate to a Recovery Officer under section 45C, it shall not be open to the factory or establishment or 
the principal or immediate employer to dispute before the Recovery Officer the correctness of the amount, 
and no objection to the certificate on any other ground shall also be entertained by the Recovery Officer.  
(2) Notwithstanding the issue of a certificate to a Recovery Officer, the authorised officer shall have 
power  to  withdraw  the  certificate  or  correct  any  clerical  or  arithmetical  mistake  in  the  certificate  by 
sending an intimation to the Recovery Officer. 

(3) The authorised officer shall intimate to the Recovery Officer any orders withdrawing or cancelling 

a  certificate  or  any  correction  made  by  him  under  sub-section  (2)  or  any  amendment  made  under                       
sub- section (4) of section 45F.  

45F.  Stay  of  proceedings  under  certificate  and  amendment  or  withdrawal  thereof.—(1) 
Notwithstanding that a certificate has been issued to the Recovery Officer for the recovery of any amount, 
the authorised officer may grant time for the payment of the amount, and thereupon the Recovery Officer 
shall stay the proceedings until the expiry of the time so granted. 

(2) Where a certificate for the recovery of amount has been issued, the authorised officer shall keep 
the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue 
of such certificate. 

(3) Where the order giving rise to a demand of amount for which a certificate for recovery has been 
issued has been modified in appeal or other proceedings under this Act, and, as a consequence thereof, the 
demand  is  reduced  but  the  order  is  the  subject-matter  of  a  further  proceeding  under  this  Act,  the 
authorised officer shall stay the recovery of such part of the amount of the certificate as pertains to the 
said reduction for the period for which the appeal or other proceeding remains pending. 

(4) Where a certificate for the recovery of amount has been issued and subsequently the amount of the 
outstanding demand is reduced as a result of an appeal or other proceeding under this Act, the authorised 
officer shall, when the order which was the subject- matter of such appeal or other proceeding has become 
final and conclusive, amend the certificate or withdraw it, as the case may be.  

45G.  Other  modes  of  recovery.—(1)  Notwithstanding  the  issue  of  a  certificate  to  the  Recovery 
Officer under section 45C, the Director General or any other officer authorised by the Corporation may 
recover the amount by any one or more of the modes provided in this section. 

(2) If any amount is due from any person to any factory or establishment or, as the case may be, the 
principal or immediate employer who is in arrears, the Director General or any other officer authorised by 
the Corporation in this behalf may required such person to deduct from the said amount the arrears due 
from such factory or establishment or, as the case may be, the principal or immediate employer under this 
Act  and  such  person  shall  comply  with  any  such  requisition  and  shall  pay  the  sum  so  deducted  to  the 
credit of the Corporation: 

Provided  that  nothing  in  this  sub-section  shall  apply  to  any  part  of  the  amount  exempt  from 
attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 
(5 of 1908). 

(3) (i) The Director General or any other officer authorised by the Corporation in this behalf may, at 
any time or from time to time, by notice in writing, require any person from whom money is due or may 
become due to the factory or establishment or, as the case may be, the principal or immediate employer or 
any person who holds or may subsequently hold money for or on account of the factory or establishment 
or,  as  the  case  may  be,  the  principal  or  immediate  employer,  to  pay  to  the  Director  General  either 
forthwith upon the money becoming due or being held or at or within the time specified in the notice (not 
being before the money becomes due or is held) so much of the money as is sufficient to pay the amount 

23 

 
due  from  the  factory  or  establishment  or,  as  the  case  may  be,  the  principal  or  immediate  employer  in 
respect of arrears or the whole of the money when it is equal to or less than that amount. 

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold 
any money for or on account of the principal or immediate employer jointly with any other person and for 
the purposes of this sub-section, the shares of the joint-holders in such account shall be presumed, until 
the contrary is proved, to be equal. 

(iii) A copy of the notice shall be forwarded to the principal or immediate employer at his last address 
known to the Director General or, as the case may be, the officer so authorised and in the case of a joint 
account  to  all  the  joint-holders  at  their  last  addresses  known  to  the  Director  General  or  the  officer  so 
authorised. 

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this 
sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued 
to a post office, bank or an insurer, it shall not be necessary for any pass book, deposit receipt, policy or 
any  other  document  to  be  produced  for  the  purpose  of  any  entry,  endorsement  or  the  like  being  made 
before payment is made notwithstanding any rule, practice or requirement to the contrary. 

(v) Any claim respecting any property in relation to which a notice under this sub-section has been 

issued arising after the date of the notice shall be void as against any demand contained in the notice. 

(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on 
oath that the sum demanded or any part thereof is not due to the principal or immediate employer or that 
he  does  not  hold  any  money  for  or  on  account  of  the  principal  or  immediate  employer,  then,  nothing 
contained in this sub-section shall be deemed to require such person to pay any such sum or part thereof, 
as the case may be, but if it is discovered that such statement was false in any material particular, such 
person shall be personally liable to the Director General or the officer so authorised to the extent of his 
own  liability  to  the  principal  or  immediate  employer  on  the  date  of  the  notice,  or  to  the  extent  of  the 
principal or immediate employer’s liability for any sum due under this Act, whichever is less. 

(vii) The Director General or the officer so authorised may, at any time or from time to time, amend 
or  revoke  any  notice  issued  under  this  sub-section  or  extend  the  time  for  making  any  payment  in 
pursuance of such notice. 

(viii) The Director General or the officer so authorised shall grant a receipt for any amount paid in 
compliance with a notice issued under this sub-section and the person so paying shall be fully discharged 
from his liability to the principal or immediate employer to the extent of the amount so paid. 

(ix) Any person discharging any liability to the principal or immediate employer after the receipt of a 
notice under this sub-section shall be personally liable to the Director General or the officer so authorised 
to the extent of his own liability to the principal or immediate employer so discharged or to the extent of 
the principal or immediate employer’s liability for any sum due under this Act, whichever is less. 

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance 
thereof  to  the  Director  General  or  the  officer  so  authorised,  he  shall  be  deemed  to  be  a  principal  or 
immediate employer in default in respect of the amount specified in the notice and further proceedings 
may  be  taken  against him  for the realisation  of  the  amount  as  if it  were an  arrear  due from  him  in  the 
manner provided in sections 45C to 45F and the notice shall have the same effect as an attachment of a 
debt by the Recovery Officer in exercise of his powers under section 45C. 

 (4) The Director General or the officer authorised by the Corporation in this behalf may apply to the 
court in whose custody there is money belonging to the principal or immediate employer for payment to 
him  of  the entire  amount of  such  money,  or  if  it  is more  than the amount  due,  an  amount  sufficient  to 
discharge the amount due. 

(5)  The  Director  General  or  any  officer  of  the  Corporation  may,  if  so  authorised  by  the  Central 
Government  by  general  or  special  order,  recover  any  arrears  of  amount  due  from  a  factory  or  an 
establishment or, as the case may be, from the principal or immediate employer by distraint and sale of its 

24 

 
or  his  movable  property  in  the  manner  laid  down  in  the  Third  Schedule  to  the  Income-tax  Act,  1961             
(43 of 1961).  

45H. Application of certain provisions of the Income-tax Act.—The provisions of the Second and 
Third Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) 
Rules,  1962,  as  in  force  from  time  to  time,  shall  apply  with  necessary  modifications  as  if  the  said 
provisions and the rules referred to the arrears of the amount of contributions, interests or damages under 
this Act instead of to the income-tax: 

Provided that any reference in the said provisions and the rules to the “assesse” shall be construed as 

a reference to a factory or an establishment or the principal or immediate employer under this Act.  

45-I. Definitions.—For the purposes of sections 45C to 45H,— 

(a)  “authorised  officer”  means  the  Director  General,  Insurance  Commissioner,  Joint  Insurance 
Commissioner,  Regional  Director  or  such  other  officer  as  may  be  authorised  by  the  Central 
Government, by notification in the Official Gazette; 

(b) “Recovery Officer” means any officer of  the Central Government, State Government or the 
Corporation,  who  may  be  authorised  by  the  Central  Government,  by  notification  in  the  Official 
Gazette, to exercise the powers of a Recovery Officer under this Act.] 

CHAPTER V 

BENEFITS 

46. Benefits.—(1) Subject to the provisions of this Act, the insured persons 1[their dependants or the 
persons  hereinafter  mentioned,  as  the  case  may  be,]  shall  be  entitled  to  the  following  benefits,           
namely:— 

(a) periodical payments to any insured person in case of his sickness certified by a duly appointed 
medical  practitioner  2[or  by  any  other  person  possessing  such  qualifications  and  experience  as  the 
Corporation may, by regulations, specify in this behalf] (hereinafter referred to as sickness benefit);  

3[(b) periodical payments to an insured woman in case of confinement or mis-carriage or sickness 
arising out of pregnancy, confinement, premature birth of child or mis-carriage, such woman being 
certified to be eligible for such payments by an authority specified in this behalf by the regulations 
(hereinafter referred to as maternity benefit;)] 

(c)  periodical  payments  to  an  insured  person  suffering  from  disablement  as  a  result  of  an 
employment  injury  sustained  as  an  employee  under  this  Act  and  certified  to  be  eligible  for  such 
payments  by  an  authority  specified  in  this  behalf  by  the  regulations  (hereinafter  referred  to  as 
disablement benefit); 

(d)  periodical  payments  to  such  dependants  of  an  insured  person  who  dies  as  a  result  of  an 
employment  injury  sustained  as  an employee  under  this  Act,  as  are  entitled  to  compensation  under 
this Act (hereinafter referred to as dependants benefit); 4*** 

(e)  medical  treatment  for  and  attendance  on  insured  persons  (hereinafter  referred  to  as  medical 

benefit) ; 2[and]  

2[(f)  payment  to  the  eldest  surviving  member  of  the family  of  an  insured  person  who  has  died, 
towards the expenditure on the funeral of the deceased insured person, or, where the insured person 
did not have a family or was not living with his family at the time  of his death, to the person who 
actually  incurs  the  expenditure  on  the  funeral  of  the  deceased  insured  person  (to  be  known  as 
5[funeral expenses]): 

1. Subs. by Act 44 of 1966, s. 18, for “or, as the case may be, their dependants” (w.e.f. 28-1-1968). 
2. Ins. by s. 18, ibid. (w.e.f. 28-1-1968). 
3. Subs. by s. 18, ibid., for clause (b) (w.e.f. 28-1-1968). 
4. The word “and” omitted by s. 18, ibid. (w.e.f. 28-1-1968). 
5. Subs. by Act 29 of 1989, s. 17, for “funeral benefit” (w.e.f. 20-10-1989). 

25 

 
                                                           
 Provided that the amount of such payment shall not exceed  1[such amount as may be prescribed by 
the Central Government] and the claim for such payment shall be made within three months of the death 
of  the  insured  person  or  within  such  extended  period  as  the  Corporation  or  any  officer  or  authority 
authorised by it in this behalf may allow.] 

(2)  The  Corporation  may,  at  the  request  of  the  appropriate  Government,  and  subject  to  such 
conditions as may be laid down in the regulations, extend the medical benefits to the family of an insured 
person.  

47.  [When  person  eligible  for  sickness  benefit.]  Omitted  by  the  Employees’  State  Insurance 

(Amendment) Act, 1966 (44 of 1966), s. 20 (w.e.f. 28-1-1968).  

48. [When person deemed available for employment.] Omitted by s. 20, ibid. (w.e.f. 28-1-1968).  

2[49.  Sickness  benefit.—The  qualification  of  a  person  to  claim  sickness  benefit,  the  conditions 
subject  to  which  such  benefit  may  be  given,  the  rates  and  period  thereof  shall  be  such  as  may  be 
prescribed by the Central Government. 

 50.  Maternity  benefit.—  The  qualification  of  an  insured  woman  to  claim  maternity  benefit,  the 
conditions subject to which such benefit may be given, the rates and period thereof shall be such as may 
be prescribed by the Central Government.] 

3[51. Disablement Benefit.—Subject to the provisions of this Act 4***,— 

(a) a person who sustains temporary disablement for not less than three days (excluding the day 
of accident) shall be entitled to periodical payment 5[at such rates and for such periods and subject to 
such conditions as may be prescribed by the Central Government]; 

(b)  a  person  who  sustains  permanent  disablement,  whether  total  of  partial,  shall  be  entitled  to 
periodical  payment  5[at  such  rates  and  for  such  period  and  subject  to  such  conditions  as  may  be 
prescribed by the Central Government]:  

6* 

* 

* 

* 

*  

51A. Presumption as to accident arising in course of employment.—For the purposes of this Act, 
an accident arising in the course of  7[an employee’s] employment shall be presumed, in the absence of 
evidence to the contrary, also to have arisen out of that employment.  

 51B.  Accidents  happening  while  acting  in  breach  of  regulations,  etc.—An  accident  shall  be 
deemed to arise out of and in the course of 7[an employee’s] employment notwithstanding that he is at the 
time  of  the  accident  acting  in  contravention  of  the  provisions  of  any  law  applicable  to  him,  or  of  any 
orders given by or on behalf of his employer or that he is acting without instructions from his employer, 
if— 

(a)  the  accident  would  have  been  deemed  so  to  have  arisen  had  the  act  not  been  done  in 

contravention as aforesaid or without instructions from his employer, as the case may be; and 

(b) the act is done for the purpose of and in connection with the employer’s trade or business.  

1. Subs. by Act 29 of 1989, s. 17, for “one hundred rupees” (w.e.f. 1-2-1991). 
2. Subs. by s. 19, ibid., for sections 49 and 50 (w.e.f. 1-2-1991). 
3. Subs. by Act 44 of 1966, s. 23, for section 51 (w.e.f. 28-1-1968). 
4. The words “and the regulations, if any” omitted by Act 29 of 1989, s. 20 (w.e.f. 1-2-1991). 
5. Subs. by s. 20, ibid., for “for the period of such disablement in accordance with the provisions of the First Schedule” (w.e.f. 1-

2-1991). 

6. Proviso omitted by s. 20, ibid. (w.e.f. 1-2-1991). 
7. Subs. by Act 18 of 2010, s. 12, for “an insured person’s” (w.e.f. 1-6-2010). 

26 

 
 
 
 
 
 
 
 
 
 
                                                           
51C. Accidents happening while travelling in employer’s transport.—(1) An accident happening 
while an 1[employee] is, with the express or implied permission of his employer, travelling as a passenger 
by any vehicle to or from his place of work shall, notwithstanding that he is under no obligation to his 
employer to travel by that vehicle, be deemed to arise out of and in the course of his employment, if—  

(a) the accident would have been deemed so to have arisen had he been under such obligation; 

and  

(b) at the time of the accident, the vehicle— 

 (i)  is  being  operated  by  or  on  behalf  of  his  employer  or  some  other  person  by  whom  it  is 

provided in pursuance of arrangements made with his employer, and  

(ii) is not being operated in the ordinary course of public transport service.  

(2) In this section “vehicle” includes a vessel and an aircraft. 

51D. Accidents happening while meeting emergency.—An accident happening to an  1[employee] 
in or about any premises at which he is for the time being employed for the purpose of his employer’s 
trade or business shall be deemed to arise out of and in the course of his employment, if it happens while 
he is taking steps, on an actual or supposed emergency at those premises, to rescue, succour or protect 
persons  who  are,  or  are  thought  to  be  or  possibly  to  be,  injured  or  imperilled,  or  to  avert  or  minimise 
serious damage to property.]  

2[51E. Accidents happening while commuting to the place of work and vice versa.—An accident 
occurring  to  an  employee  while  commuting  from  his  residence to the place  of employment  for  duty  or 
from the place of employment to his residence after performing duty, shall be deemed to have arisen out 
of  and  in  the  course  of  employment  if  nexus  between  the  circumstances,  time  and  place  in  which  the 
accident occurred and the employment is established.] 

3[52.  Dependant’s  benefit.—(1)  If  an  insured  person  dies  as  a  result  of  an  employment  injury 
sustained as an employee under this Act (whether or not he was in receipt of any periodical payment for 
temporary disablement in respect of the injury) dependant’s benefit shall be payable  4[at such rates and 
for such periods and subject to such conditions as may be prescribed by the Central Government] to his 
dependants specified in 5[sub-clause (i), sub-clause (ia) and] sub-clause (ii) of clause (6A) of section 2.  

(2)  In  case  the  insured  person  dies  without  leaving  behind  him  the  dependants  as  aforesaid,  the 
dependants’  benefit  shall  be  paid  to  the  other  dependants  of  the  deceased  4[at  such  rates  and  for  such 
period and subject to such conditions as may be prescribed by the Central Government]. 

52A. Occupational disease.—(1) If an employee employed in any employment specified in Part A of 
the  Third  Schedule  contracts  any  disease  specified  therein  as  an  occupational  disease  peculiar  to  that 
employment, or if an employee employed in the employment specified in Part B of that Schedule for a 
continuous period of not less than six months contracts any disease specified therein as an occupational 
disease peculiar to that employment or if an employee employed in any employment specified in Part C 
of  that  Schedule  for  such  continuous  period  as  the  Corporation  may  specify  in  respect  of  each  such 
employment,  contracts  any  disease  specified  therein  as  an  occupational  disease  peculiar  to  that 
employment,  the  contracting  of  the  disease  shall,  unless  the  contrary  is  proved,  be  deemed  to  be  an 
“employment injury” arising out of and in the course of employment. 

(2)  (i)  Where  the  Central  Government  or  a  State  Government,  as  the  case  may  be,  adds  any 
description of employment to the employments specified in Schedule III to the Workmen’s Compensation 
Act, 1923 (8 of 1923), by virtue of the powers vested in it under sub-section (3) of section 3 of the said 
Act, the said description of employment and the occupational diseases specified under that sub-section as 
peculiar to that description of employment shall be deemed to form part of the Third Schedule. 

1. Subs. by Act 18 of 2010, s. 12, for “insured person” (w.e.f. 1-6-2010). 
2. Ins. by s. 13, ibid. (w.e.f. 1-6-2010). 
3. Subs. by Act 44 of 1966, s. 24, for  section 52 (w.e.f. 28-1-1968). 
4. Subs. by Act 29 of 1989, s. 21, for “in accordance with the provisions of the First Schedule” (w.e.f. 1-2-1991). 
5. Subs. by s. 21, ibid., for “sub-clause (i) and” (w.e.f. 1-2-1991). 

27 

 
                                                           
(ii) Without prejudice to the provisions of clause (i), the Corporation after giving, by notification in 
the  Official  Gazette,  not  less  than  three  months’  notice  of  its  intention  so  to  do,  may,  by  a  like 
notification, add any description of employment to the employments specified in the Third Schedule and 
shall specify in the case of employments so added the diseases which shall be deemed for the purposes of 
this  section  to  be  occupational  diseases  peculiar  to  those  employments  respectively  and  thereupon  the 
provisions of this Act shall apply, as if such diseases had been declared by this Act to be occupational 
diseases peculiar to those employments. 

(3) Save as provided by sub-sections (1) and (2), no benefit shall be payable to an employee in respect 
of any disease unless the disease is directly attributable to a specific injury by accident arising out of and 
in the course of his employment.  

(4) The provisions of section 51A shall not apply to the cases to which this section applies.]  

1[53. Bar against receiving or recovery of compensation or damages under any other law.—An 
insured person or his dependants shall not be entitled to receive or recover, whether from the employer of 
the  insured  person  or  from  any  other  person,  any  compensation  or  damages  under  the  Workmen’s 
Compensation Act, 1923 (8 of 1923), or any other law for the time being in force or otherwise, in respect 
of an employment injury sustained by the insured person as an employee under this Act.]  

2[54. Determination of question of disablement.—Any question— 

(a) whether the relevant accident has resulted in permanent disablement; or  

(b) whether the extent of loss of earning capacity can be assessed provisionally or finally; or 

(c) whether the assessment of the proportion of the loss of earning capacity is provisional or final; 

or  

(d) in the case of provisional assessment, as to the period for which such assessment shall hold 

good, 

shall be determined by a medical board constituted in accordance with the provisions of the regulations 
and any such question shall hereafter be referred to as the “disablement question”.  

54A.  References  to  medical  boards  and  appeals  to  medical  appeal  tribunals  and  Employees’ 
Insurance  Courts.—(1)  The  case  of  any  insured  person  for  permanent  disablement  benefit  shall  be 
referred by the Corporation to a medical board for determination of the disablement question and if, on 
that  or  any  subsequent  reference,  the  extent  of  loss  of  earning  capacity  of  the  insured  person  is 
provisionally  assessed,  it  shall  again  be  so  referred  to  the  medical  board  not  later  than  the  end  of  the 
period taken into account by the provisional assessment. 

(2) If the insured person or the Corporation is not satisfied with the decision of the medical board, the 
insured  person  or  the  Corporation  may  appeal in the prescribed  manner and  within  the  prescribed time 
to— 

(i)  the  medical  appeal  tribunal  constituted  in  accordance  with  the  provisions  of  the  regulations 
with  a  further  right  of  appeal  in  the  prescribed  manner  and  within  the  prescribed  time  to  the 
Employees’ Insurance Court, or 

(ii) the Employees’ Insurance Court directly:]  

3[Provided  that  no  appeal  by  an  insured  person  shall  lie  under  this  sub-section  if  such  person  has 
applied  for  commutation  of  disablement  benefit  on  the  basis  of  the  decision  of  the  medical  board  and 
received the commuted value of such benefit: 

Provided further that no appeal by the Corporation shall lie under this sub-section if the Corporation 

paid the commuted value of the disablement benefit on the basis of the decision of the medical board.]  

1. Subs. by Act 44 of 1966, s. 25, for section 53 (w.e.f. 28-1-1968). 
2. Subs. by s. 26, ibid., for section 54 (w.e.f 28-1-1968). 
3. Ins. by Act 29 of 1989, s. 22 (w.e.f. 20-10-1989). 

28 

 
                                                           
1[55. Review of decisions by medical board or medical appeal tribunal.—(1) Any decision under 
this  Act  of  a  medical  board  or  a  medical  appeal  tribunal  may  be  reviewed  at  any  time  by  the  medical 
board  or  the  medical  appeal  tribunal,  as  the  case  may  be,  if  it  is  satisfied  by  fresh  evidence  that  the 
decision  was  given  in  consequence  of  the  non-disclosure  or  misrepresentation  by  the  employee  or  any 
other  person  of  a  material  fact  (whether  the  non-disclosure  or  misrepresentation  was  or  was  not 
fraudulent). 

(2) Any assessment of the extent of the disablement resulting from the relevant employment injury 
may also be reviewed by a medical board, if it is satisified that since the making of the assessment there 
has been a substantial and unforeseen aggravation of the results of the relevant injury: 

Provided that an assessment shall not be reviewed under this sub-section unless the medical board is 
of opinion that having regard to the period taken into account by the assessment and the probable duration 
of the aggravation aforesaid, substantial injustice will be done by not reviewing it. 

(3)  Except  with  the  leave  of  a  medical  appeal  tribunal,  an  assessment  shall  not  be  reviewed  under  
sub-section (2) on any application made less than five years, or in the case of a provisional assessment, 
six months, from the date thereof and on such a review the period to be taken into account by any revised 
assessment shall not include any period before the date of the application. 

(4) Subject to the foregoing provisions of this section, a medical board day deal with a case of review 
in any manner in which it could deal with it on an original reference to it, and in particular may make a 
provisional assessment notwithstanding that the assessment under review was final; and the provisions of 
section  54A  shall  apply  to  an  application  for  review  under  this  section  and  to  a  decision  of  a  medical 
board  in  connection  with  such  application  as  they  apply  to  a  case  for  disablement  benefit  under  that 
section and to a decision of the medical board in connection with such case. 

55A.  Review  of  dependants’  benefit.—(1)  Any  decision  awarding  dependants’  benefit  under  this 
Act may be reviewed at any time by the Corporation if it is satisfied by fresh evidence that the decision 
was given in consequence of non-disclosure or misrepresentation by the claimant or any other person of a 
material  fact  (whether  the  non-disclosure  or  misrepresentation  was  or  was  not  fraudulent)  or  that  the 
decision  is  no  longer  in  accordance  with  this  Act  due  to  any  birth  or  death  or  due  to  the  marriage,                
re-marriage or cesser of infirmity of, or attainment of the age of eighteen years by a claimant. 

(2) Subject to the provisions of this Act, the Corporation may, on such review as aforesaid, direct that 

the dependants’ benefit be continued, increased, reduced or discontinued.] 

56.  Medical  benefit.—(1)  An  insured  person  or  (where  such  medical  benefit  is  extended  to  his 
family)  a  member  of  his  family  whose  condition  requires  medical  treatment  and  attendance  shall  be 
entitled to receive medical benefit. 

(2) Such medical benefit may be given either in the form of out-patient treatment and attendance in a 
hospital  or  dispensary,  clinic  or  other  institution  or  by  visits  to  the  home  of  the  insured  person  or 
treatment as in-patient in a hospital or other institution. 

(3)  A  person  shall  be  entitled  to  medical  benefit  during  any  2[Period]  for  which  contributions  are 
payable in respect of him or in which he is qualified to claim sickness benefit or maternity benefit  3[or is 
in receipt of such disablement benefit as does not disentitle him to medical benefit under the regulations]:  

Provided that a person in respect of whom contribution ceases to be payable under this Act may be 

allowed medical benefit for such period and of such nature as may be provided under the regulations: 

4[Provided  further  that  an  insured  person  who  ceases  to  be  in  insurable  employment  on  account  of 
permanent  disablement  shall  continue,  subject  to  payment  of  contribution  and  such  other  conditions  as 
may be prescribed by the Central Government, to receive medical benefit till the date on which he would 

1. Subs. by Act 44 of 1966, s. 27, for section 55 (w.e.f. 28-1-1968). 
2. Subs. by Act 45 of 1984, s. 8, for “week” (w.e.f. 27-1-1985). 
3. Subs. by Act 53 of 1951, s. 17, for “or, as provided under the regulations, is in receipt of disablement benefit”                   

(w.e.f. 6-10-1951). 

4. Ins. by Act 29 of 1989, s. 23 (w.e.f. 1-2-1991). 

29 

 
                                                           
have vacated the employment on attaining the age of superannuation had he not sustained such permanent 
disablement: 

1[Provided  also that  an insured  person,  who  has  attained  the  age  of superannuation,  and  his spouse 
shall be eligible to receive medical benefit subject to payment of contribution and such other conditions as 
may be prescribed by the Central Government.]  

Explanation.—In  this  section,  “superannuation”,  in  relation  to  an  insured  person,  means  the 
attainment by that person of such age as is fixed in the contract or conditions of service as the age on the 
attainment of which he shall vacate the insurable employment or the age of sixty years where no such age 
is fixed and the person is no more in the insurable employment.]  

57. Scale of medical benefit.—(1) An insured person and (where such medical benefit is extended to 
his family) his family shall be entitled to receive medical benefit only of such kind and on such scale as 
may be provided by the State Government or by the Corporation, and an insured person or, where such 
medical benefit is extended to his family, his family shall not have a right to claim any medical treatment 
except such as is provided by the dispensary, hospital, clinic or other institution to which he or his family 
is allotted, or as may be provided by the regulations. 

(2) Nothing in this Act shall entitle an insured person and (where such medical benefit is extended to 
his family) his family to claim reimbursement from the Corporation of any expenses incurred in respect of 
any medical treatment, except as may be provided by the regulations.  

58.  Provision  of  medical  treatment  by  State  Government.—(1)  The  State  Government  shall 
provide for insured persons and (where such medical benefit is extended to his families) their families in 
the State, reasonable medical, surgical and obstetric treatment: 

Provided that the State Government may, with the approval of the Corporation, arrange for medical 
treatment at clinics of medical practitioners on such scale and subject to such terms and conditions as may 
be agreed upon. 

(2)  Where  the  incidence  of  sickness  benefit  payment  to  insured  persons  in  any  State  is  found  to 
exceed the all-India average, the amount of such excess shall be shared between the Corporation and the 
State Government in such proportion as may be fixed by agreement between them: 

Provided  that  the  Corporation  may  in  any  case  waive  the  recovery  of  the  whole  or  any  part  of  the 

share which is to be borne by the State Government. 

(3) The Corporation may enter into an agreement with a State Government in regard to the nature and 
scale of the medical treatment that should be provided to insured persons and (where such medical benefit 
is  extended  to  the  families)  their  families  (including  provision  of  buildings,  equipment,  medicines  and 
staff)  and  for  the  sharing  of  the  cost  thereof  and  of  any  excess  in  the  incidence  of  sickness  benefit  to 
insured persons between the Corporation and the State Government. 

(4)  In  default  of  agreement  between  the  Corporation  and  any  State  Government  as  aforesaid  the 
nature and extent of the medical treatment to be provided by the State Government and the proportion in 
which the cost thereof and of the excess in the incidence of sickness benefit shall be shared between the 
Corporation and that Government, shall be determined by an arbitrator (who shall be or shall have been a 
Judge  of  the  2[High  Court  3[of  a  State]])  appointed  by  the  Chief  Justice  of  India  and  the  award  of  the 
arbitrator shall be binding on the Corporation and the State Government. 

4[(5)  The  State  Government  may,  in  addition  to  the  Corporation  under  this  Act,  with  the  previous 
approval of the Central Government, establish such organisation (by whatever name called) to provide for 
certain benefits to employees in case of sickness, maternity and employment injury: 

Provided  that  any  reference  to  the  State  Government  in  the  Act  shall  also  include  reference  to  the 

organisation as and when such organisation is established by the State Government. 

1. Subs. by Act 18 of 2010, s. 14, for the proviso (w.e.f. 1-6-2010). 
2. Subs. by the A.O. 1950, for “High Court of a Province”. 
3. Subs. by Act 53 of 1951, s. 18, for “for a Part A State” (w.e.f. 6-10-1951). 
4. Ins. by Act 18 of 2010, s. 15 (w.e.f. 1-6-2010). 

30 

 
                                                           
(6) The organisation referred to in sub-section (5) shall have such structure and discharge functions, 

exercise powers and undertake such activities as may be prescribed.] 

59.  Establishment  and  maintenance  of  hospitals,  etc.,  by  Corporation.—(1)  The  Corporation 
may,  with  the  approval  of  the  State  Government,  establish  and  maintain  in  a  State  such  hospitals, 
dispensaries and other medical and surgical services as it may think fit for the benefit of insured persons 
and (where such medical benefit is extended to their families) their families. 

(2)  The  Corporation  may  enter  into  agreement  with  any  1***  local  authority,  private  body  or 
individual in regard to the provision of medical treatment and attendance for insured persons and (where 
such medical benefit is extended to their families) their families, in any area and sharing the cost thereof. 

2[(3) The Corporation may also enter into agreement with any local authority, local body or private 
body  for  commissioning  and  running  Employees’  State  Insurance  hospitals  through  third  party 
participation for providing medical treatment and attendance to insured persons and where such medical 
benefit has been extended to their families, to their families.]  

3[59A.  Provision  of  medical  benefit  by  the  Corporation  in  lieu  of  State  Government.—(1) 
Notwithstanding  anything  contained  in  any  other  provision  of  this  Act,  the  Corporation  may,  in 
consultation  with  the  State  Government,  undertake  the  responsibility  for  providing  medical  benefit  to 
insured  persons  and  where  such  medical  benefit  is  extended  to  their  families,  to  the  families  of  such 
insured persons in the State subject to the condition that the State Government shall share the cost of such 
medical  benefit  in  such  proportion  as  may  be  agreed  upon  between  the  State  Government  and  the 
Corporation. 

(2) In the event of the Corporation exercising its power under sub-section (1), the provisions relating 
to  medical  benefit  under  this  Act  shall  apply,  so  far  as  may  be,  as  if  a  reference  therein  to  the  State 
Government were a reference to the Corporation.] 

4[59B.  Medical  and  para-medical  education.—The  Corporation  may  establish  medical  colleges, 
nursing  colleges  and  training  institutes  for  its  para-medical  staff  and  other  employees  with  a  view  to 
improve the quality of services provided under the Employees’ State Insurance Scheme.] 

General 

60.  Benefit  not  assignable  or  attachable.—(1)  The  right  to  receive  any  payment  of  any  benefit 

under this Act shall not be transferable or assignable. 

(2) No cash benefit payable under this Act shall be liable to attachment or sale in execution of any 

decree or order of any Court. 

61.  Bar  of  benefits  under  other  enactments.—When  a  person  is  entitled  to  any  of  the  benefits 
provided  by  this  Act,  he  shall  not  be  entitled  to  receive  any  similar  benefit  admissible  under  the 
provisions of any other enactment.  

62. Persons not to commute cash benefits.—Save as may be provided in the regulations no person 

shall be entitled to commute for a lump sum any 5[disablement benefit] admissible under this Act.  

6[63.  Persons  not  entitled  to  receive  benefit  in  certain  cases.—Save  as  may  be  provided  in  the 
regulations,  no  person  shall  be  entitled  to  sickness  benefit  or  disablement  benefit  for  temporary 
disablement on any day on which he works or remains on leave or on a holiday in respect of which he 
receives wages or on any day on which he remains on strike.]  

1. The words and letter “Part B State” omitted by the A.O. (No. 4) 1957 (w.e.f. 1-11-1956). 
2. Ins. by Act 18 of 2010, s. 16 (w.e.f. 1-6-2010). 
3. Ins. by Act 44 of 1966, s. 28 (w.e.f. 17-6-1967). 
4. Ind. by Act 18 of 2010, s. 17 (w.e.f. 1-6-2010). 
5. Subs. by Act 29 of 1989, s. 24, for “periodical payment” (w.e.f. 20-10-1989). 
6. Subs. by s. 25, ibid., for section 63 (w.e.f. 20-10-1989). 

31 

 
                                                           
64.  Recipients  of  sickness  or  disablement  benefit  to  observe  conditions.—A  person  who  is  in 

receipt  of  sickness  benefit  or  disablement  benefit  (other  than  benefit  granted  on  permanent             
disablement)— 

(a)  shall  remain  under  medical  treatment  at  a  dispensary,  hospital,  clinic  or  other  institution 
provided under this Act and shall carry out the instructions given by the medical officer or medical 
attendant in charge thereof;  

(b) shall  not  while  under treatment  do anything  which  might  retard  or  prejudice  his  chances  of 

recovery;  

(c)  shall  not  leave  the  area  in  which  medical  treatment  provided  by  this  Act  is  being  given, 
without  the  permission  of the  medical  officer,  medical  attendant  or  such  other authority  as  may  be 
specified in this behalf by the regulations; and  

(d) shall allow himself to be examined by any duly appointed medical officer 1*** or other person 

authorised by the Corporation in this behalf. 

65. Benefits not to be combined.—(1) An insured person shall not be entitled to receive for the same 

period— 

(a) both sickness benefit and maternity benefit; or 

(b) both sickness benefit and disablement benefit for temporary disablement; or 

(c) both maternity benefit and disablement benefit for temporary disablement. 

(2) Where a person is entitled to more than one of the benefits mentioned in sub-section (1), he shall 

be entitled to choose which benefit he shall receive.  

66.  [Corporation’s  right  to  recover  damages  from  employer  in  certain  cases.]  Omitted  by  the 

Employees’ State Insurance (Amendment) Act, 1966 (44 of 1966), s. 29 (w.e.f. 17-6-1967).  

67. [Corporation’s right to be indemnified in certain cases.] Omitted by s. 29, ibid. (w.e.f. 17-6-1967).  

68.  Corporation’s  rights  where  a  principal  employer  fails  or  neglects  to  pay  any                  

contribution.—(1) If any principal employer fails or neglects to pay any contribution which under this 
Act he is liable to pay in respect of any employee and by reason thereof such person becomes disentitled 
to any benefit or entitled to a benefit on a lower scale, the Corporation may, on being satisfied that the 
contribution should have been paid by the principal employer, pay to the person the benefit at the rate to 
which he would have been entitled if the failure or neglect had not occurred and the Corporation shall be 
entitled to recover from the principal employer either— 

2[(i) the  difference  between  the  amount  of  benefit  which  is paid  by  the  Corporation  to  the  said 
person and the amount of the benefit which would have been payable on the basis of the contributions 
which were in fact paid by the employer; or] 

(ii)  twice  the  amount  of  the  contribution  which  the  employer  failed  or  neglected  to  pay, 

whichever is greater. 

(2)  The  amount  recoverable  under  this  section  may  be  recovered  as  if  it  were  an  arrear  of                         

land-revenue 3[or under section 45C to section 45-I.]  

69. Liability of owner or occupier of factories, etc., for excessive sickness benefit.—(1) Where the 

Corporation considers that the incidence of sickness among insured persons is excessive by reason of—  

(i)  insanitary  working  conditions  in  a  factory  or  establishment  or  the  neglect  of  the  owner  or 
occupier  of  the  factory  or  establishment  to  observe  any  health  regulations  enjoined  on  him  by  or 
under any enactment, or 

1. The words “or sick visitor” omitted by Act 29 of 1989, s. 26 (w.e.f. 20-10-1989). 
2. Subs. by Act 53 of 1951, s. 19, for clause (i) (w.e.f. 6-10-1951). 
3. Added by Act 29 of 1989, s. 27 (w.e.f. 20-10-1989). 

32 

 
                                                           
(ii)  insanitary  conditions  of  any  tenements  or  lodgings  occupied  by  insured  persons  and  such 
insanitary  conditions  are  attributable  to  the  neglect  of  the  owner  of  the  tenements  or  lodgings  to 
observe any health regulations enjoined on him by or under any enactment,  

the Corporation may send to the owner or occupier of the factory or establishment or to the owner of the 
tenements or lodgings, as the case may be, a claim for the payment of the amount of the extra expenditure 
incurred  by  the  Corporation  as  sickness  benefit;  and  if  the  claim  is  not  settled  by  agreement,  the 
Corporation may refer the matter, with a statement in support of its claim, to the appropriate Government. 

(2) If the appropriate Government is of opinion that a prima facie case for inquiry is disclosed, it may 

appoint a competent person or persons to hold an inquiry into the matter. 

(3) if upon such inquiry it is proved to the satisfaction of the person or persons holding the inquiry 
that the excess in incidence of sickness among the insured persons is due to the default or neglect of the 
owner or occupier of the factory or establishment or the owner of the tenements or lodgings, as the case 
may  be,  the  said  person  or  persons  shall  determine  the  amount  of  the  extra  expenditure  incurred  as 
sickness benefit, and the person or persons by whom the whole or any part of such amount shall be paid 
to the Corporation. 

(4)  A  determination  under  sub-section  (3)  may  be  enforced  as  if  it  were  a  decree  for  payment  of 

money passed in a suit by a Civil Court. 

(5) For the purposes of this section, “owner” of tenements or lodgings shall include any agent of the 
owner and any person who is entitled to collect the rent of the tenements or lodgings as a lessee of the 
owner. 

70. Repayment of benefit improperly received.—(1) Where any person has received any benefit or 
payment  under  this  Act  when  he  is  not  lawfully  entitled  thereto,  he  shall  be  liable  to  repay  to  the 
Corporation  the  value  of  the  benefit  or  the  amount  of  such  payment,  or  in  the  case  of  his  death  his 
representative shall be liable to repay the same from the assets of the deceased, if any, in his hands. 

(2) The value of any benefits received other than cash payments shall be determined by such authority 
as may be specified in the regulations made in this behalf and the decision of such authority shall be final.  

(3)  The  amount  recoverable  under  this  section  may  be  recovered  as  if  it  were  an  arrear  of                    

land-revenue. 1[or under section 45 C to section 45-I].  

71.  Benefit  payable  up  to  and  including  day  of  death.—2[Except  as  provided  in  the  proviso  to            

sub-section (2) of section 50, if a person dies] during any period for which he is entitled to a cash benefit 
under this Act, the amount of such benefit up to and including the day of his death shall be paid to any 
person nominated by the deceased person in writing in such form as may be specified in the regulations or 
if there is no such nomination, to the heir or legal representative of the deceased person.  

72.  Employer  not  to  reduce  wages,  etc.—No  employer  by  reason  only  of  his  liability  for  any 
contributions  payable  under  this  Act  shall,  directly  or  indirectly  reduce  the  wages  of  any  employee,  or 
except as provided by the regulations, discontinue or reduce benefits payable to him under the conditions 
of his service which are similar to the benefits conferred by this Act.  

73.  Employer  not  to  dismiss  or  punish  employee  during  period  of  sickness,  etc.—(1)  No 
employer  shall  dismiss,  discharge,  or  reduce  or  otherwise  punish  an  employee  during  the  period  the 
employee is in receipt of sickness benefit or maternity benefit, nor shall he, except as provided under the 
regulations,  dismiss,  discharge  or  reduce  or  otherwise  punish  an  employee  during  the  period  he  is  in 
receipt  disablement  benefit  for  temporary  disablement  or  is  under  medical  treatment  for  sickness  or  is 
absent from work as a result of illness duly certified in accordance with the regulations to arise out of the 
pregnancy or confinement rendering the employee unfit for work. 

(2) No notice of dismissal or discharge or reduction given to an employee during the period specified 

in sub-section (1) shall be valid or operative.  

1. Added by Act 29 of 1989, s. 27 (w.e.f. 20-10-1989). 
2. The words in bracket shall stand substituted “If a person dies” by s. 28, ibid. (date to be notified). 

33 

 
                                                           
1[CHAPTER VA 

SCHEME FOR OTHER BENEFICIARIES 

73A. Definitions.—In this Chapter, 

(a) “other beneficiaries” means persons other than the person insured under this Act; 

(b)  “Scheme”  means  any  Scheme  framed  by  the  Central  Government  from  time  to  time  under 

section 73B for the medical facility for other beneficiaries; 

(c) “underutilised hospital” means any hospital not fully utilised by the persons insured under this 

Act; 

(d)  “user  charges”  means  the  amount  which  is  to  be  charged  from  the  other  beneficiaries  for 
medical facilities as may be notified by the Corporation in consultation with the Central Government 
from time to time.] 

73B.  Power  to  frame  Scheme.—Notwithstanding  anything  contained  in  this  Act,  the  Central 
Government  may,  by  notification  in  the  Official  Gazette,  frame  Scheme  for  other  beneficiaries and  the 
members of their families for providing medical facility in any hospital established by the Corporation in 
any area which is underutilised on payment of user charges. 

73C. Collection of user charges.—The user charges collected from the other beneficiaries shall be 

deemed to be the contribution and shall form part of the Employees’ State Insurance Fund. 

73D.  Scheme  for  other  beneficiaries.—The  Scheme  may  provide  for  all  or  any  of  the  following 

matters, namely:— 

(i) the other beneficiaries who may be covered under this Scheme; 

(ii) the time and manner in which the medical facilities may be availed by the other beneficiaries; 

(iii) the form in which the other beneficiary shall furnish particulars about himself and his family 

whenever required as may be specified by the Corporation; 

(iv)  any  other  matter  which  is to  be  provided  for in the  Scheme  or  which  may  be  necessary  or 

proper for the purpose of implementing the Scheme. 

 73E.  Power  to  amend  Scheme.—The  Central  Government  may,  by  notification  in  the  Official 

Gazette, add to, amend, vary or rescind the Scheme. 

73F.  Laying  of  Scheme  framed  under  this  Chapter.—Every  Scheme  framed  under  this  Chapter 
shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for 
a total period of thirty days which may be comprised in one session or in two or more successive sessions, 
and  if,  before  the  expiry  of  the  session  immediately  following  the  session  or  the  successive  sessions 
aforesaid,  both  Houses  agree  in  making  any  modification in  the  Scheme  or  both  Houses  agree  that the 
Scheme should not be made, the Scheme shall thereafter have effect only in such modified form or to be 
of no effect, as the case may be; so, however, that any such modification or annulment shall be without 
prejudice to the validity of anything previously done under that Scheme.] 

CHAPTER VI 

ADJUDICATION OF DISPUTE AND CLAIMS 

74. Constitution of Employees’ Insurance Court.—(1) The State Government shall, by notification 
in the Official Gazette, constitute an Employees’ Insurance Court for such local area as may be specified 
in the notification. 

1. Subs. by Act 18 of 2010, s. 18, for Chapter VA (w.e.f. 1-6-2010). 

34 

 
                                                           
(2) The Court shall consist of such number of Judges as the State Government may think fit. 

(3) Any person who is or has been a judicial officer or is a legal practitioner of five years’ standing 

shall be qualified to be a Judge of the Employees’ Insurance Court.  

(4) The State Government may appoint the same Court for two or more local areas or two or more 

Courts for the same local area.  

(5)  Where  more  than  one  Court  has  been  appointed  for  the  same  local  area,  the  State  Government 

may by general or special order regulate the distribution of business between them.  

75. Matters to be decided by Employees’ Insurance Court.—(1) If any question or dispute arises 

as to— 

(a) whether any person is an employee within the meaning of this Act or whether he is liable to 

pay the employee’s contribution, or 

(b) the rate of wages or average daily wages of an employee for the purposes of this Act, or 

(c) the rate of contribution payable by a principal employer in respect of any employee, or 

(d) the person who is or was the principal employer in respect of any employee, or 

(e) the right of any person to any benefit and as to the amount and duration thereof, or  

1[(ee) any direction issued by the Corporation under section 55A on a review of any payment of 

dependant’s benefits, or]  

2* 

* 

* 

* 

*  

(g)  any  other  matter  which  is  in  dispute  between  a  principal  employer  and  the  Corporation,  or 
between a principal employer and an immediate employer, or between a person and the Corporation 
or  between  an  employee  and  a  principal  or  immediate  employer  in  respect  of  any  contribution  or 
benefit  or  other  dues  payable  or  recoverable  under  this  Act  3[or  any  other  matter  required  to  be  or 
which may be decided by the Employees’ Insurance Court under this Act],  

such  question  or  dispute  4[subject  to  the  provisions  of  sub-section  (2A)]  shall  be  decided  by  the 
Employees’ Insurance Court in accordance with the provisions of this Act.  

(2)  4[Subject  to  the  provisions  of  sub-section  (2A),  the  following  claims]  shall  be  decided  by  the 

Employees’ Insurance Court, namely:— 

(a) claim for the recovery of contributions from the principal employer;  

(b) claim by a principal employer to recover contributions from any immediate employer;  

2* 

* 

* 

*  

* 

(d) claim against a principal employer under section 68;  

(e) claim under section 70 for the recovery of the value or amount of the benefits received by a 

person when he is not lawfully entitled thereto; and  

(f) any claim for the recovery of any benefit admissible under this Act.  

3[(2A) If in any proceedings before the Employees’ Insurance Court a disablement question arises and 
the decision of a medical board or a medical appeal tribunal has not been obtained on the same and the 
decision  of  such  question  is  necessary  for  the  determination  of  the  claim  or  question  before  the 
Employees’ Insurance Court, that Court shall direct the Corporation to have the question decided by this 
Act and shall thereafter proceed with the determination of the claim or question before it in accordance 
with the decision of the medical board or the medical appeal tribunal, as the case may be, except where an 

1. Subs. by Act 44 of 1966, s. 32, for clause (ee) (w.e.f. 28-1-1968). 
2. Omitted by s. 32, ibid.  (w.e.f. 28-1-1968). 
3. Ins. by s. 32, ibid. (w.e.f. 28-1-1968). 
4. Subs. by s. 32, ibid., for “The following claims” (w.e.f. 28-1-1968). 

35 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
appeal  has  been  filed  before  the  Employees’  Insurance  Court  under  sub-section  (2)  of  section  54A  in 
which case the Employees’ Insurance Court may itself determine all the issues arising before it. 

1[(2B) No matter which is in dispute between a principal employer and the Corporation in respect of 
any contribution or any other dues shall be raised by the principal employer in the Employees’ Insurance 
Court unless he has deposited with the Court fifty per cent. of the amount due from him as claimed by the 
Corporation: 

Provided that the Court may, for reasons to be recorded in writing, waive or reduce the amount to be 

deposited under this sub-section.]  

(3) No Civil Court shall have jurisdiction to decide or deal with any question or dispute as aforesaid 
or to adjudicate on any liability which by or under this Act is to be decided by  2[a medical board, or by a 
medical appeal tribunal or by the Employees’ Insurance Court].  

76. Institution of proceedings, etc.—(1) Subject to the provisions of this Act and any rules made by 
the  State  Government,  all proceedings  before  the  Employees’  Insurance  Court  shall  be  instituted in the 
Court appointed for the local area in which the insured person was working at the time  the question or 
dispute arose.  

(2)  If  the  Court  is  satisfied  that  any  matter  arising  out  of  any  proceeding  pending  before  it  can  be 
more conveniently dealt with by any other Employees’ Insurance Court in the same State, it may, subject 
to any rules made by the State Government in this behalf, order such matter to be transferred to such other 
Court for disposal and shall forthwith transmit to such other Court the records connected with that matter.  

(3) The State Government may transfer any matter pending before any Employees’ Insurance Court 

in the State to any such Court in another State with the consent of the State Government of that State. 

(4)  The  Court  to  which  any  matter  is  transferred  under  sub-section  (2)  or  sub-section  (3)  shall 

continue the proceedings as if they had been originally instituted in it. 

77. Commencement of proceedings.—(1) The proceedings before an  Employees’ Insurance Court 

shall be commenced by application.  

3[(1A) Every such application shall be made within a period of three years from the date on which the 

cause of action arose.  

Explanation.—For the purpose of this sub-section,— 

 (a) the cause of action in respect of a claim for benefit shall not be deemed to arise unless the 
insured person or in the case of dependants’ benefit, the dependants of the insured person claims or 
claim  that  benefit in accordance  with  the regulations  made  in that  behalf  within  a  period  of twelve 
months after the claim became due or within such further period as the Employees’ Insurance Court 
may allow on grounds which appear to it to be reasonable];  

4[(b)  the  cause  of  action  in  respect  of  a  claim  by  the  Corporation  for  recovering  contributions 
(including interest and damages) from the principal employer shall be deemed to have arisen on the 
date on which such claim is made by the Corporation for the first time: 

Provided  that  no  claim  shall  be  made  by  the  Corporation  after  five  years  of  the  period  to 

which the claim relates; 

(c)  the  cause  of  action  in  respect  of a  claim  by  the  principal employer  for  recovering  contributions 
from  an  immediate  employer  shall  not  be  deemed  to  arise  till  the  date  by  which  the  evidence  of 
contributions having been paid is due to be received by the Corporation under the regulations.] 

1. Ins. by Act 29 of 1989, s. 29 (w.e.f. 20-10-1989). 
2. Subs. by Act 44 of 1966, s. 32, for “the Employees' Insurance Court” (w.e.f. 28-1-1968). 
3. Ins. by s. 33, ibid. (w.e.f. 28-1-1968). 
4. Subs. by Act 29 of 1989, s. 30, for clause (b) (w.e.f. 20-10-1989). 

36 

 
                                                           
(2)  Every  such  application  shall  be  in  such  form  and  shall  contain  such  particulars  and  shall  be 
accompanied  by  such  fee,  if  any,  as  may  be  prescribed  by  rules  made  by  the  State  Government  in 
consultation with the Corporation.  

78. Powers of  Employees’  Insurance  Court.—(1) The  Employees’  Insurance  Court shall  have  all 
the powers  of  a  Civil  Court for  the  purposes  of  summoning  and  enforcing  the attendance of  witnesses, 
compelling  the  discovery  and  production  of  documents  and  material  objects,  administering  oath  and 
recording evidence and such Court shall be deemed to be a Civil Court within the meaning of  1[section 
195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974).] 

(2) The Employees’ Insurance Court shall follow such procedure as may be prescribed by rules made 

by the State Government.  

(3) All costs incidental to any proceeding before an Employees’ Insurance Court shall, subject to such 

rules as may be made in this behalf by the State Government, be in the discretion of the Court.  

(4) An order of the Employees’ Insurance Court shall be enforceable as if it were a decree passed in a 

suit by a Civil Court.  

79.  Appearance  by  legal  practitioners,  etc.—Any  application,  appearance  or  act  required  to  be 
made  or  done  by  any  person  to  or  before  an  Employees’  Insurance  Court  (other  than  appearance  of  a 
person  required  for  the  purpose  of  his  examination  as  a  witness)  may  be  made  or  done  by  a  legal 
practitioner or by an officer of a registered trade union authorized in writing by such person or with  the 
permission of the Court, by any other person so authorized.  

80.  [Benefit  not  admissible  unless  claimed  in  time.]  Omitted  by  the  Employees’  State  Insurance 

(Amendment) Act, 1966 (44 of 1966), s. 34 (w.e.f. 28-1- 1968).  

81. Reference to High Court.—An Employees’ Insurance Court may submit any question of law for 
the decision of the High Court and if it does so shall decide the question pending before it in accordance 
with such decision.  

82. Appear.—(1) Save as expressly provided in this section, no appeal shall lie from an order of an 

Employees’ Insurance Court. 

(2)  An  appeal  shall  lie  to  the  High  Court  from  an  order  of  an  Employees’  Insurance  Court  if  it 

involves a substantial question of law. 

(3) The period of limitation for an appeal under this section shall be sixty days. 

(4)  The  provisions  of  section  5  and  12  of  the  2[Limitation  Act,  1963  (36-6-1963)]  shall  apply  to 

appeals under this section.  

83. Stay of payment pending appeal.—Where the Corporation has presented an appeal against an 
order  of  the  Employees’  Insurance  Court,  that  Court  may,  and  if  so  directed  by  the  High  Court  shall, 
pending  the  decision  of  the  appeal,  withhold  the  payment  of  any  sum  directed  to  be  paid  by  the  order 
appealed against.  

CHAPTER VII 

PENALTIES 

84. Punishment for false statement.—Whoever, for the purpose of causing any increase in payment 
or  benefit  under  this  Act,  or  for  the  purpose  of  causing  any  payment  or  benefit  to  be  made  where  no 
payment or benefit is authorised by or under this Act, or for the purpose of avoiding any payment to be 
made  by  himself  under  this  Act  or  enabling  any  other  person  to  avoid  any  such  payment,  knowingly 
makes  or  causes  to  be  made  any  false  statement  or  false  representation,  shall  be  punishable  with 

1. Subs. by Act 45 of 1984, s. 9, for “section 195 Chapter XXXV of the Code of Criminal Procedure, 1898 (5 of 1898)”              

(w.e.f. 27-1-1985). 

2. Subs. by Act 29 of 1989, s. 31, for “Indian Limitation Act, 1908 (9 of 1908)” (w.e.f. 20-10-1989). 

37 

 
                                                           
imprisonment for a term which may extend to  1[six months] or with fine not exceeding  2[two thousand] 
rupees, or with both:  

3[Provided that where an insured person is convicted under this section, he shall not be entitled for 

any cash benefit under this Act for such period as may be prescribed by the Central Government].  

85. Punishment for failure to pay contributions, etc.—If any person— 

(a) fails to pay any contribution which under this Act he is liable to pay, or  

(b)  deducts  or  attempts  to deduct  from  the  wages  of  an  employee  the  whole  or any  part  of the 

employer’s contribution, or  

(c) in contravention of section 72 reduces the wages or any privileges or benefits admissible to an 

employee, or  

(d) in contravention of section 73  or any regulation dismisses, discharges, reduces or otherwise 

punishes an employee, or 

 (e) fails or refuses to submit any return required by the regulations, or makes a false return, or  

(f) obstructs any Inspector or other official of the Corporation in the discharge of his duties, or  

(g) is guilty of any contravention of or non-compliance with any of the requirements of this Act 

or the rules or the regulations in respect of which no special penalty is provided,  

4[he shall be punishable— 

5[(i)  where  he  commits  an  offence  under  clause  (a),  with  imprisonment  for  a  term  which  may 

extend to three years but— 

(a) which shall not be less than one year, in case of failure to pay the employee’s contribution 
which has been deducted by him from the employee’s wages and shall also be liable to fine of ten 
thousand rupees;  

(b) which shall not be less than six months, in any other case and shall also be liable to fine of 

five thousand rupees: 

Provided that the  Court  may,  for any  adequate  and  special  reasons  to  be  recorded  in  the judgment, 

impose a sentence of imprisonment for a lesser term; 

(ii)  where  he  commits  an  offence  under  any  of  the  clauses  (b)  to  (g)  (both  inclusive),  with 
imprisonment for a term which may extend to one year or with fine which may extend to four thousand 
rupees, or with both.]   

6[85A. Enhanced punishment in certain cases after previous conviction.—Whoever, having been 
convicted by a court of an offence punishable under this Act, commits the same offence shall, for every 
such subsequent offence, be punishable with imprisonment for a term which may extend to  7[two years 
and with fine of five thousand rupees]: 

Provided that where such subsequent offence is for failure by the employer to pay any contribution 
which under this Act he is liable to pay, he shall, for every such subsequent offence, be punishable with 
imprisonment for a term which may extend to 8[five years but which shall not be less than two years and 
shall also be liable to fine of twenty-five thousand rupees].  

1. Subs. by Act 29 of 1989, s. 32, for “three months” (w.e.f. 20-10-1989). 
2. Subs. by s. 32, ibid., for “five hundred” (w.e.f. 20-10-1989). 
3.  The proviso shall stand Inserted (date to be notified) by s. 32, ibid. 
4. Subs. by Act 38 of 1975, s. 4, for certain words (w.e.f. 1-9-1975). 
5. Subs. by Act 29 of 1989, s. 33, for clauses (i) and (ii) (w.e.f. 20-10-1989). 
6. Ins. by Act 38 of 1975, s. 5 (w.e.f. 1-9-1975). 
7.  Subs.  by  Act  29  of  1989,  s.  34,  for  “one  year  or  with  fine  which  may  extend  to  two  thousand  rupees,  or  both”                       

(w.e.f. 20-10-1989). 

8. Subs. by s. 35, ibid., for certain words (w.e.f. 20-10-1989). 

38 

 
                                                           
85B. Power to recover damages.—(1) Where an employer fails to pay the amount due in respect of 
any  contribution  or  any  other  amount  payable  under  this  Act,  the  Corporation  may  recover,  1[from  the 
employer by way of penalty such damages not exceeding the amount of arrears as may be specified in the 
regulations]: 

Provided that before recovering such damages, the employer shall be given a reasonable opportunity 

of being heard:  

2[Provided  further  that  the  Corporation  may  reduce  or  waive  the  damages  recoverable  under  this 
section in relation to an establishment which is a sick industrial company in respect of which a scheme for 
rehabilitation  has  been  sanctioned  by  the  Board  for  Industrial  and  Financial  Reconstruction  established 
under section 4 of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), subject to 
such terms and conditions as may be specified in regulations.]  

(2)  Any  damages  recoverable  under  sub-section (1) may  be  recovered  as an  arrear  of  land  revenue 

2[or under section 45C to section 45-I].  

85C.  Power  of  Court  to  make  orders.—(1)  Where  an  employer  is  convicted  of  an  offence  for 
failure  to  pay  any  contribution  payable  under  this  Act,  the  Court  may,  in  addition  to  awarding  any 
punishment, by order, in writing, require him within a period specified in the order (which the Court may 
if  it  thinks  fit  and  on  application  in  that  behalf,  from  time  to  time,  extend),  to  pay  the  amount  of 
contribution in respect of which the offence was committed,  3[and to furnish the return relating to such 
contributions]. 

(2) Where an order is made under sub-section (1), the employer shall not be liable under this Act in 
respect  of  the  continuation  of  the  offence  during  the  period  or  extended  period,  if  any,  allowed  by  the 
Court, but if, on the expiry of such period or extended period, as the case may be, the order of the Court 
has  not  been  fully  complied  with,  the  employer  shall  deemed  to  have  committed  a  further  offence  and 
shall be punishable with imprisonment in respect thereof under section 85 and shall also be liable to pay 
fine which may extend to 4[one thousand] rupees for every day after such expiry on which the order has 
not been complied with.]  

86.  Prosecutions.—(1)  No  prosecution  under  this  Act  shall  be  instituted  except  by  or  with  the 
previous sanction of the Insurance Commissioner 5[or of such other officer of the Corporation as may be 
authorised in this behalf by the 6[Director General of the Corporation]].  

7[(2) No court inferior to that of a Metropolitan Magistrate or  Judicial Magistrate of the First Class 

shall try any offence under this Act.]  

(3)  No  Court  shall  take  cognizance  of  any  offence  under  this  Act  except  on  a  complaint  made  in 

writing in respect thereof 8***.  

9[86A.  Offences  by  companies.—(1)  If  the  person  committing  an  offence  under  this  Act  is  a 
company, every person, who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:  

Provided that nothing contained in this sub-section shall render any person liable to any punishment, 
if he proves that the offence was committed without his knowledge or that he exercised all due diligence 
to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director 

1. Subs. by Act 29 of 1989, s. 35, for certain words (w.e.f. 1-1-1992). 
2. Ins. by s. 35, ibid. (w.e.f. 1-1-1992). 
3. Added by s. 36, ibid. (w.e.f. 20-10-1989). 
4. Subs. by s, 36,  ibid., for “one hundred” (w.e.f.  20-10-1989). 
5. Added by Act 53 of 1951, s. 22 (w.e.f. 6-10-1951). 
6. Subs. by Act 44 of 1966, s. 35, for “Central Government” (w.e.f. 17-6-1967). 
7. Subs. by Act 29 of 1989, s. 37, for sub-section (2) (w.e.f. 20-10-1989). 
8. Certain words omitted by s. 37, ibid. (w.e.f. 20-10-1989). 
9. Ins. by s. 38, ibid. (w.e.f. 20-10-1989). 

39 

 
                                                           
or manager, secretary or other officer of the company, such director, manager, secretary or other officer 
shall  be  deemed  to  be  guilty  of  that  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly.  

Explanation.—For the purposes of this section,— 

(i)  “company”  means  any  body  corporate  and  includes  a  firm  and  other  associations  of 

individuals; and  

(ii) “director” in relation to— 

(a) a company, other than a firm, means the managing director or a whole-time director;  

(b) a firm means a partner in the firm.]  

CHAPTER VIII 

MISCELLANEOUS 

87.  Exemption  of  a  factory  or  establishment  or  class  of  factories  or  establishments.—The 
appropriate  Government,  may,  by  notification  in  the  Official  Gazette  and  subject  to  such  conditions  as 
may  be  specified  in  the  notification,  exempt  any  factory  or  establishment  or  class  of  factories  or 
establishments in any specified area from the operation of this Act for a period not exceeding one year 
and may from time to time by like notification renew any such exemption for periods not exceeding one 
year at a time.  

1[Provided  that  such  exemptions  may  be  granted  only  if  the  employees  in  such  factories  or 
establishments  are  otherwise  in  receipt  of  benefits  substantially  similar  or  superior  to  the  benefits 
provided under this Act: 

Provided further that an application for renewal shall be made three months before the date of expiry 
of the exemption period and a decision on the same shall be taken by the appropriate Government within 
two months of receipt of such application.] 

88. Exemption of persons or class of persons.—The appropriate Government may, by notification 
in the Official Gazette and subject to such conditions as it may deem fit to impose, exempt any persons or 
class of persons employed in any factory or establishment or class of factories or establishments to which 
this Act applies from the operation of the Act.  

89.  Corporation  to  make  representation.—No  exemption  shall  be  granted  or  renewed  under  
section 87 or section 88, unless a reasonable opportunity has been given to the Corporation to make any 
representation it may wish to make in regard to the proposal and such representation has been considered 
by the appropriate Government.  

90.  Exemption  of  factories  or  establishments  belonging  to  Government  or  any  local  
authority.—The appropriate Government may  2[after consultation with the Corporation,] by notification 
in the Official Gazette and subject to such conditions as may be specified in the notification, exempt any 
factory  or  establishment  belonging  to  3***  any  local  authority  4[the  operation  of  this  Act],  if  the 
employees in any such factory or establishment are otherwise in receipt of benefits substantially similar or 
superior to the benefits provided under this Act.  

91. Exemption from one or more provisions of the Act.—The appropriate Government may, with 
the consent of the Corporation, by notification in the Official Gazette, exempt any employees or class of 
employees in any factory or establishment or class of factories or establishments from one or more of the 
provisions relating to the benefits provided under this Act.  

1. Ins. by Act 18 of 2010, s. 20 (w.e.f. 1-6-2010). 
2. Ins. by Act 44 of 1966, s. 36 (w.e.f. 17-6-1967). 
3. The words “The Government or” omitted by Act 29 of 1989, s. 39 (w.e.f. 20-10-1989). 
4. Ins. by Act 44 of 1966, s. 36 (w.e.f. 17-6-1967). 

40 

 
                                                           
1[91A.  Exemptions  to  be  either  prospective  or  retrospective.—Any  notification  granting 

exemption  under  section  87,  section  88,  section  90  or  section  91  may  be  issued  so  as  to  take  effect                 
2[prospectively] on such date as may be specified therein.]  

3[91AA.  Central  Government  to  be  appropriate  Government.—Notwithstanding  anything 
contained in this Act, in respect of establishments located in the States where medical benefit is provided 
by the Corporation, the Central Government shall be the appropriate Government.] 

4[91B. Misuse of benefits.—If the Central Government is satisfied that the benefits under this Act are 
being  misused  by  insured  persons  in  a  factory  or  establishment,  that  Government  may,  by  order, 
published in the Official Gazette, disentitle such persons from such of the benefits as it thinks fit:  

Provided that no such order shall be passed unless a reasonable opportunity of being heard is given to 
the concerned factory or establishment, insured persons and the trade unions registered under the Trade 
Unions Act, 1926 (16 of 1926) having members in the factory or establishment.  

91C.  Writing  off  of  losses.—Subject  to  the  conditions  as  may  be  prescribed  by  the  Central 
Government, where the Corporation is of opinion that the amount of contribution, interest and damages 
due to the Corporation is irrecoverable, the Corporation may sanction the writing off finally of the said 
amount.]  

92.  Power  of  Central  Government to  give  directions.—5[(1)] The  Central  Government  may  give 

directions to a State Government as to the carrying into execution of this Act in the State.  

6[(2) The Central Government may, from time to time, give such directions to the Corporation as it 
may think fit for the efficient administration of the Act, and if any such direction is given, the Corporation 
shall comply with such direction.] 

93.  Corporation  officers  and  servants  to  be  public  servants.—All  officers  and  servants  of  the 
Corporation shall be deemed to be public servants within the meaning of section 21 of the Indian Penal 
Code (45 of 1860).  

7[93A. Liability in case of transfer of establishment.—Where an employer, in relation to a factory 
or establishment, transfers that factory or establishment in whole or in part, by sale, gift, lease or licence 
or in any other manner whatsoever, the employer and the person to whom the factory or establishment is 
so transferred shall jointly and severally be liable to pay the amount due in respect of any contribution or 
any other amount payable under this Act in respect of the periods up to the date of such transfer: 

Provided that the liability of the transferee shall be limited to the value of the assets obtained by him 

by such transfer.]  

94.  Contributions,  etc.,  due  to  Corporation  to  have  priority  over  other  debts.—There  shall  be 
deemed to be included among the debts which, under section 49 of the Presidency-towns Insolvency Act, 
1909 (3 of 1909) or under section 61 of the Provincial Insolvency Act, 1920 (5 of 1920),  8[or under any 
law relating to insolvency in force 9[in the territories which, immediately before the 1st November, 1956 
were comprised in a Part B State]], 10[or under section 530 of the Companies Act, 1956 (1 of 1956)], are, 
in the distribution of the property of the insolvent or in the distribution of the assets of a company being 
wound up, to be paid in priority to all other debts, the amount due in respect of any contribution or any 
other  amount  payable  under  this  Act  the  liability  where  for  accured  before  the  date  of  the  order  of 
adjudication of the insolvent or the date of the winding up, as the case may be. 

1. Ins. by Act 44 of, 1966, s. 37 (w.e.f. 17-6-1967). 
2. Subs. by Act 18 of 2010, s. 21, for “either prospectively or retrospectively” (w.e.f. 1-6-2010). 
3. Ins. by s. 22, ibid. (w.e.f. 1-6-2010). 
4. Ins. by Act 29 of 1989, s. 40 (w.e.f. 20-10-1989). 
5. Section 92 renumbered as sub-section (1) thereof by s. 41, ibid. (w.e.f. 20-10-1989). 
6. Ins. by s. 41, ibid. (w.e.f. 20-10-1989). 
7. Ins. by Act 38 of 1975, s. 6 (w.e.f. 1-9-1975). 
8. Ins. by Act 53 of 1951, s. 23 (w.e.f. 6-10-1951). 
9. Subs. by A.O. (No. 3), 1956, for “in a Part B State”. 
10. Subs. by Act 29 of 1989, s. 42, for “or under section 230 of the Indian Companies Act, 1913 (7 of 1913)” (w.e.f. 20-10-1989). 

41 

 
                                                           
1[94A.  Delegation  of  powers.—The  Corporation,  and,  subject  to  any  regulations  made  by  the 
Corporation in this behalf, the Standing Committee may direct that all or any of the powers and functions 
which may be exercised or performed by the Corporation or the Standing Committee, as the case may be, 
may,  in  relation  to  such  matters  and  subject  to  such  conditions,  if  any,  as  may  be  specified,  be  also 
exercisable by any officer or authority subordinate to the Corporation.]  

95.  Power  of  Central  Government  to  make  rules.—(1)  The  Central  Government  may,  2[after 
consultation with the Corporation and] subject to the condition of previous publication, make rules  not 
inconsistent with this Act for the purpose of giving effect to the provisions thereof. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

3[(a) the limit of wages beyond which a person shall not be deemed to be an employee; 

(ab) the limit of maximum monthly salary for the purpose of sub-section (1) of section 17;]  

4[(ac)]  the  manner  in  which  5[appointments]  and  elections  of  members  of  the  Corporation,  the 

Standing Committee and the Medical Benefit Council shall be made;  

(b) the quorum at meetings of the Corporation, the Standing Committee and the Medical Benefit 

Council and the minimum number of meetings of those bodies to be held in a year;  

(c)  the  records  to  be  kept  of  the  transaction  of  business  by  the  Corporation,  the  Standing 

Committee and the Medical Benefit Council;  

(d)  the  powers  and  duties  of  the  6[Director  General  and  the  Financial  Commissioner]  and  the 

conditions of their service;  

(e) the powers and duties of the Medical Benefit Council ;  

7[(ea) the types of expenses which may be termed as administrative expenses, the percentage of 

income of the Corporation which may be spent for such expenses; 

(eb) the rates of contributions and limits of wages below which employees are  not liable to pay 

contribution; 

(ec) the manner of calculation of the average daily wage; 

(ed) the manner of certifying the certificate to recover amount by the Recovery Officer; 

(ee) the amount of funeral expenses; 

(ef)  the  qualifications,  conditions,  rates  and  period  of  sickness,  benefit,  maternity  benefit, 

disablement benefit and dependents benefit; 

8[(eff) the income of dependant parents from all sources;] 

(eg) the conditions for grant of medical benefits for insured persons who cease to be in insurable 

employment on account of permanent disablement; 

(eh)  the  conditions  for  grant  of  medical  benefits  for  persons  who  have  attained  the  age  of 

Superannuation;]  

1. Ins. by Act 53 of 1951, s. 24 (w.e.f. 6-10-1951). 
2. Ins. by Act 44 of 1966, s. 38 (w.e.f. 28-1-1968). 
3. Ins. by Act 29 of 1989, s. 43 (w.e.f. 20-10-1989). 
4. Clause (a) re-lettered as clause (ac) by s. 43, ibid. (w.e.f. 20-10-1989). 
5. Subs. by s. 43, ibid., for “nominations” (w.e.f. 20-10-1989). 
6. Subs. by s. 43, ibid., for “Principal Officers” (w.e.f. 20-10-1989). 
7. Ins. by s. 43, ibid. (w.e.f. 20-10-1989). 
8. Ins. by Act 18 of 2010, s. 23 (w.e.f. 1-6-2010). 

42 

 
 
 
 
                                                           
1[(ehh) the conditions under which the medical benefits shall be payable to the insured person and 
spouse of an insured person who has attained the age of superannuation, the person who retires under 
Voluntary Retirement Scheme and the person who takes pre-mature retirement;] 

2[ 3[(ei)] the manner in which and the time within which appeals may be filed to medical appeal 

tribunals or Employees’ Insurance Courts;] 

(f) the procedure to be adopted in the execution of contracts;  

(g) the acquisition, holding and disposal of property by the Corporation; 

 (h) the raising and repayment of loans;  

(i) the investment of the funds of the Corporation and of any provident or other benefit fund and 

their transfer or realisation ;  

(j) the basis on which the periodical valuation of the assets and liabilities of the Corporation shall 

be made;  

(k) the bank or banks in which the funds of the Corporation may be deposited, the procedure to be 
followed in regard to the crediting of moneys accruing or payable to the Corporation and the manner 
in which any sums may be paid out of the Corporation funds and the officers by whom such payment 
may be authorised;  

(l) the accounts to be maintained by the Corporation and the forms in which such accounts shall 

be kept and the times at which such accounts shall be audited; 

 (m) the publication of the accounts of the Corporation and the report of auditors, the action to be 
taken on the audit report, the powers of auditors to disallow and surcharge items of expenditure and 
the recovery of sums so disallowed or surcharged;  

(n) the preparation of budget estimates and of supplementary estimates and the manner in which 

such estimates shall be sanctioned and published; 

 (o) the establishment and maintenance of provident or other benefit fund for officers and servants 

of the Corporation; 4*** 

5[(oa) the period of non-entitlement for cash benefit in case of conviction of an insured person;] 
 (p)  any  matter  which  is  required  or  allowed  by  this  Act  to  be  prescribed  by  the  Central 

Government.  
6[(2A) The power to make rules conferred by this section shall include the power to give retrospective 
effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them but 
no retrospective effect shall be given to any rule  so as to prejudicially affect the interest of any person 
other than the Corporation to whom such rule may be applicable.]  

(3) Rules made under this section shall be published in the Official Gazette and thereupon shall have 

effect as if enacted in this Act.  

7[(4) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament while it is in session for a total period of thirty days which may be comprised in one 
session  8[or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid] both Houses agree in making any modification 
in the rule of both  Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule.] 

1. Ins. by Act 18 of 2010, s. 23 (w.e.f. 1-6-2010). 
2. Ins. by Act 44 of 1966, s. 38 (w.e.f. 28-1-1968). 
3. Clause (ee) relettered as Clause (ei) by Act 29 of 1989, s. 43 (w.e.f. 20-10-1989). 
4. The word “and” omitted by s. 43, ibid. (w.e.f. 20-10-1989). 
5. Ins. by s. 43, ibid. (w.e.f. 20-10-1989). 
6. Ins. by Act 45 of 1984, s. 10 (w.e.f. 27-1-1985). 
7. Ins. by Act 44 of 1966, s. 38 (w.e.f. 28-1-1968). 
8. Subs. by Act 38 of 1975, s. 7, for certain words (w.e.f. 1-9-1975). 

43 

 
                                                           
96.  Power  of  State  Government  to  make  rules.—(1)  The  State  Government  may,  1[after 
consultation  with the  Corporation and]  subject to  the  condition  of  previous  publication,  make  rules  not 
inconsistent with this Act in regard to all or any of the following matters, namely:— 

(a)  the  constitution  of  Employees’  Insurance  Courts,  the  qualifications  of  persons  who  may  be 

appointed Judges thereof, and the conditions of service of such Judges; 

(b) the procedure to be followed in proceedings before such Courts and the execution of orders 

made by such Courts;  

(c) the fee payable in respect of applications made to the Employees’ Insurance Court, the costs 
incidental to the proceedings in such Court, the form in which applications should be made to it and 
the particulars to be specified in such applications; 

(d)  the  establishment  of  hospitals,  dispensaries  and  other  institutions,  the  allotment  of  insured 

persons or their families to any such hospital, dispensary or other institution;  

(e)  the  scale  of  medical  benefit  which  shall  be  provided  at  any  hospital,  clinic,  dispensary  or 

institution, the keeping of medical records and the furnishing of statistical returns; 

2[(ee)  the  organisational  structure,  functions,  powers,  activities  and  other  matters  for  the 

establishment of the organisation;] 

(f)  the  nature  and  extent  of  the  staff,  equipment  and  medicine  that  shall  be  provided  at  such 

hospitals, dispensaries and institutions; 

(g) the conditions of service of the staff employed at such hospitals dispensaries and institutions; 

and  

(h)  any  other  matter  which  is  required  or  allowed  by  this  Act  to  be  prescribed  by  the  State 

Government.  
(2) Rules made under this section shall be published in the Official Gazette and thereupon shall have 

effect as if enacted in this Act.  

3[(3) Every rule made under this section shall be laid as soon as may be after it is made, before each 
House of the State Legislature where it consists of two Houses, or, where such Legislature consists of one 
House, before that House.]  

97.  Power  of  Corporation  to  make  regulations.—(1)  The  Corporation  may,  4***  subject  to  the 
condition  of  previous publications,  make  regulations,  not inconsistent  with this Act  and  the rules  made 
thereunder,  for  the  administration  of  the  affairs  of  the  Corporation  and  for  carrying  into  effect  the 
provisions of this Act. 

(2) In particular and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(i) the time and place of meetings of the Corporation, the Standing Committee and the Medical 

Benefit Council and the procedure to be followed at such meetings;  

5[(ia)  the  time  within  which  and  the  manner  in  which  a  factory  or  establishment  shall  be 

registered;]  

(ii)  the  matters  which  shall  be  referred  by  the  Standing  Committee  to  the  Corporation  for 

decision; 

(iii) the manner in which any contribution payable under this Act shall be assessed and collected;  

1. Ins. by Act 44 of 1966, s. 39 (w.e.f. 28-1-1968). 
2. Ins. by Act 18 of 2010, s. 24 (w.e.f. 1-6-2010). 
3. Ins. by Act 45 of 1984, s. 11 (w.e.f. 27-1-1985). 
4. The words "with the prior approval of the Central Government" omitted by Act 29 of 1989, s. 44 (w.e.f. 20-10-1989). 
5. Ins.  by Act 44 of 1966, s. 40 (w.e.f. 28-1-1968). 

44 

 
                                                           
1[(iiia) the rate of interest higher than twelve per cent. on delayed payment of contributions;] 

(iv) reckoning of wages for the purpose of fixing the contribution payable under this Act;  

2[(iva) the register of employees to be maintained by the immediate employer;  

(ivb) the entitlement of sickness benefit or disablement benefit for temporary disablement on any 
day  on  which  person  works  or  remains  on leave  or  on  holiday  and  in  respect of  which  he  receives 
wages or for any day on which he remains on strike;]  

(v) the certification of sickness and eligibility for any cash benefit.  

3[(vi) the method of determining whether an insured person is suffering from one or more of the 

diseases specified in the Third Schedule;]  

(vii) the assessing of the money value of any benefit which is not a cash benefit;  

(viii) the time within which 4[and the form and manner in which] any claim for a benefit may be 

made and the particulars to be specified in such claim;  

(ix) the circumstances in which an employee in receipt of disablement benefit may be dismissed, 

discharged, reduced or otherwise punished;  

(x) the manner in which and the place and time at which any benefit shall be paid;  

(xi) the method of calculating the amount of cash benefit payable and the circumstances in which 
and the extent to which commutation of disablement and dependant’s benefits, may be allowed and 
the method of calculating the commutation value;  

(xii) the notice of pregnancy or of confinement and notice and proof of sickness;  

3[(xiia) specifying the authority competent to give certificate of eligibility for maternity benefit;  

(xiib) the manner of nomination by an insured woman for payment of maternity benefit in case of 

her or her child’s death;  

(xiic)  the  production  of  proof  in  support  of  claim  for  maternity  benefit  or  additional  maternity 

benefit;]  

(xiii) the conditions under which any benefit may be suspended;  

(xiv) the conditions to be observed by a person when in receipt of any benefit and the periodical 

medical examination of such persons;  

5* 

* 

* 

* 

*  

(xvi)  the  appointment  of  medical  practitioners  for  the  purposes  of  this  Act,  the  duties  of  such 

practitioners and the form of medical certificates;  

3[(xvia) the qualification and experience which a person should possess for giving certificate of 

sickness;  

(xvib) the constitution of medical boards and medical appeal tribunals;]  

(xvii) the  penalties for  breach  of regulations  by  fine (not  exceeding  two  days’ wages  for  a  first 
breach and not exceeding three days’ wages for any subsequent breach) which may be imposed on 
employees;  

2[(xviia) the amount of damages to be recovered as penalty;  

(xviib) the terms and conditions for reduction or waiver of damages in relation to a sick industrial 

company;]  

1. Subs. by Act 29 of 1989, s. 44, for clause (iiia) (w.e.f. 20-10-1989). 
2. Ins. by s. 44, ibid. (w.e.f. 20-10-1989). 
3. Subs. by Act 44 of 1966, s. 40, for clause (vi) (w.e.f. 28-1-1968). 
4. Subs. by s. 40, ibid., for “and the form in which” (w.e.f. 28-1-1968). 
5. Omitted by Act 29 of 1989, s. 44 (w.e.f. 20-10-1989). 

45 

 
 
 
 
 
 
 
 
                                                           
(xviii)  the  circumstances  in  which  and  the  conditions  subject  to  which  any  regulation  may  be 

relaxed, the extent of such relaxation, and the authority by whom such relaxation may be granted;  

1[(xix) the returns to be submitted and the registers or records to be maintained by the principal 
and immediate employers, the forms of such returns, registers or records, and the times at which such 
returns  should  be  submitted  and  the  particulars  which  such  returns,  registers  and  records  should 
contain;]  

(xx)  the  duties  and  powers  of  2[Social  Security  Officers]  and  other  officers  and  servants  of  the 

Corporation;  

3[(xxa)  the  constitution  of  the  appellate  authority  and  the  interest  on  amount  deposited  by  the 

employer with the Corporation.] 

4[(xxi)  the  method  of  recruitment,  pay  and  allowances,  discipline,  superannuation  benefits  and 
other  conditions  of  service  of  the  officers and  servants  of the  Corporation  other  than the  5[Director 
General and Financial Commissioner]];  

(xxii) the procedure to be followed in remitting contributions to the Corporation; and 

(xxiii) any matter in respect of which regulations are required or permitted to be made by this Act.  

6[(2A) The condition of previous publication shall not apply to any regulations of the nature specified 

in clause (xxi) of sub-section (2).]  

(3)  Regulations  made  by  the  Corporation  shall  be  published  in  the  Gazette  of  India  and  thereupon 

shall have effect as if enacted in this Act.  

7[(4) Every regulation shall, as soon as may be, after it is made by the Corporation, be forwarded to 
the Central Government and that Government shall cause a copy of the same to be laid before each House 
of  Parliament,  while  it  is  in  session  for  a  total  period  of  thirty  days,  which  may  be  comprised  in  one 
session  or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session the successive sessions aforesaid, both Houses agree in making any modification in 
the regulation or both Houses agree that the regulation should not be made, the regulation shall thereafter 
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such 
modification or annulment shall be without prejudice to the validity of any thing previously done under 
that regulation.]  

98. [Corporation may undertake duties in Part B. States.] Omitted by the Employees’ State Insurance 

(Amendment) Act, 1951 (53 of 1951), s. 26. 

8[99. Medical care for the families of insured persons.—At any time when its funds so permit, the 
Corporation  may  provide  or  contribute  towards  the  cost  of  medical  care  for  the  families  of  insured 
persons.]  

9[99A. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order published in the Official Gazette, make such provisions 
or give such directions, not inconsistent with the provisions of this Act, as appears to it to be necessary or 
expedient for removing the difficulty.  

(2)  Any  order  made  under  this  section  shall  have  effect  notwithstanding  anything  inconsistent 

therewith in any rules or regulations made under this Act.]  

1. Subs. by Act 53 of 1951, s. 25, for clause (xix) (w.e.f. 6-10-1951). 
2. Subs. by Act 18 of 2010, s. 25, for “Inspectors” (w.e.f. 1-6-2010). 
3. Ins. by s. 25, ibid. (w.e.f. 1-6-2010). 
4. Subs. by Act 53 of 1951, s. 25, for clause (xxi) (w.e.f. 6-10-1951). 
5. Subs. by Act 29 of 1989, s. 44, for “Principal Officers” (w.e.f. 20-10-1989). 
6. Ins. by Act 53 of 1951, s. 25 (w.e.f. 6-10-1951). 
7. Ins. by Act 45 of 1984, s. 12 (w.e.f. 27-1-1985). 
8. Subs. by Act 29 of 1989, s. 45, for section 99 (w.e.f. 20-10-1989). 
9. Ins. by Act 44 of 1966, s. 41 (w.e.f. 17-6-1967). 

46 

 
                                                           
1[100. Repeals and savings.— If, immediately before the day on which this Act comes into force 2[in 
any part of the territories which, immediately before the 1st November, 1956, were comprised in a Part B 
State], there is in force in 3[that part] any law corresponding to this Act, that law shall, on such day, stand 
repealed: 

Provided that the repeal shall not affect— 

 (a) the previous operations of any such law, or  

(b)  any  penalty,  forfeiture  or  punishment  incurred  in  respect  of  any  offence  committed  against 

any such law, or  

(c) any investigation or remedy in respect of any such penalty, forfeiture or punishment;  

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any 
such penalty, forfeiture or punishment may be imposed, as if this Act had not been passed:  

Provided further that subject to the preceding proviso anything done or any action taken under any 
such law shall be deemed to have been done or taken under the corresponding provision of  this Act and 
shall  continue  in    force  accordingly  unless  and  until  superseded  by  anything  done  or  any  action  taken 
under this Act.]  

______ 

1. Ins. by Act 53 of 1951, s. 27 (w.e.f. 6-10-1951). 
2. Subs. by the A.O. (No. 3) 1956, for “in a Part B State”. 
3. Subs., ibid. 1956, for “that State”. 

47 

 
 
 
 
 
 
                                                           
1[  [THE  FIRST  SCHEDULE]  Omitted  by  the  Employees’  State  Insurance  (Amendment)  Act,  1989             

(29 of 1989), s. 46 (w.e.f. 1-2-1991). 

1. Subs. by Act 44 of 1966, s. 42, for the First Schedule and Second Schedule (w.e.f. 28-1-1968). 

48 

 
 
 
                                                           
Sl. 
No. 

1. 

2. 

3. 

4. 

5. 

6. 

 7. 

8. 

9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

THE SECOND SCHEDULE 

[See section 2 (15A) and (15B)] 

Description of injury 

Percentage of 
loss of earning 
capacity 

PART I 
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT  
TOTAL DISABLEMENT 

Loss of both hands or amputation at higher sites.       .             .        .        . 

Loss of a hand and a foot.       .             .        .        .               .             . 

Double amputation through leg or thigh, or amputation through leg or 
thigh on one side and loss of other foot.             .        .        .               .              

Loss of sight to such an extent as to render the claimant unable to perform 
any work for which eye sight is essential.             .        .        .               .              

Very severe facial disfigurement.             .        .        .               .             . 

Absolute deafness.             .        .        .               .             .                  .      . 

100 

100 

100 

100 

100 

100 

PART II 

LIST OF INJURIES DEEMED TO RESULT IN PERMANENT PARTIAL DISABLEMENT 

Amputation—Upper limbs (either arm) 

Amputation through shoulder joint.             .        .        .               .                          90 

Amputation below shoulder with stump less than 20.32 cm. from tip 
of acromion.             .        .        .               .             .                  .      . 

Amputation from 20.32 cm. from tip of acromion to less than 11.43 
cm. below tip of olecranon.             .        .        .               .             .                  

Loss  of  a  hand  or  of  the  thumb  and  four  fingers  of  one  hand  or 
amputation from 11.43 cm. below tip of olecranon.             .        .        
.               .             .                  .         .       .           .                . 

Loss of thumb.               .             .                  .         .       .           .                 

Loss of thumb and its metacarpal bone.               .             .                   

Loss of four fingers of one hand.               .             .                  .          

Loss of three fingers of one hand.               .             .                  .          

Loss of two fingers of one hand.               .             .                  .         .        

Loss of terminal phalanx of thumb.               .             .                  .          

80 

70 

60 

30 

40 

50 

30 

20 

20 

10] 

90 

1[16A. 

Guillotine amputation of the tip of the thumb without loss of bone.   .  

17. 

Amputation of both feet resulting in end-bearing stumps.    .   .          . 

1. Ins. by Act 29 of 1989, s. 47 (w.e.f. 20-10-1989). 

49 

 
 
 
 
                                                           
Sl. No. 

Description of injury 

Percentage of 
loss of earning 
capacity 

18. 

19. 

20. 

21. 

22. 

23. 

24. 

25. 

26. 

27. 

28. 

29. 

30. 

31. 

32. 

Amputation—lower limbs 

Amputation through both feet proximal to the metatarso-phalangeal 
joint.               .             .                  .         .       .           .                . 

Loss of all toes of both feet through the metatarso-phalangeal joint 

Loss of all toes of both feet proximal to the proximal inter-halangeal 
joint.               .             .                  .         .       .           .                . 

Loss of all toes of both feet distal to the proximal inter-phalangeal 
joint.               .             .                  .         .       .           .                . 

Amputation at hip.               .             .                  .         .       .           .                
. 

Amputation below hip with stump not exceeding 12.70 cm. in length 
measured from tip of great trenchanter.               .             .                  .         
.       .           .                . 

Amputation below hip with stump exceeding 12.70 cm. in length 
measured from tip of great trenchanter but not beyond middle thigh 

80 

40 

30 

20 

90 

80 

70 

Amputation below middle thigh to 8.89 cm. below knee.          .        .                  
.         .       .           .        

60 

Amputation below knee with stump exceeding 8.89 cm. but not 
exceeding 12.70 cm.                .             .                  .         .            .        

Amputation below knee with stump exceeding 12.70 cm. 

Amputation of one foot resulting in end-bearing.               .             .                  
.         .       .           .                . 

Amputation through one foot proximal to the metatarso-phalangeal 
joint.               .             .                  .         .       .           .                . 

Loss of all toes of one foot through the metatarso-phalangeal joint  

Other Injuries 

Loss of one eye, without complications, the other being normal, .       . 

Loss of vision of one eye without complications or disfigurement of 
eye-ball, the other being normal.               .             .                  .         .        

50 

1[50] 

1[50] 

1[50] 

20 

40 

30 

2[32A. 

Partial loss of vision of one eye.               .             .                  .         .        

10] 

Loss of— 

A.—Fingers of right or left hand 

Index finger 

33. 

34. 

Whole.               .             .                  .         .       .           .                . 

Two phalanges.               .             .                  .         .       .           .                 

14 

11 

1. Subs. by Act 29 of 1989, s. 47 (w.e.f. 20-10-1989). 
2. Ins. by s. 47, ibid. (w.e.f 20-10-1989). 

50 

 
 
 
 
 
 
 
                                                           
Sl. No. 

Description of injury 

Percentage of 
loss of earning 
capacity 

35. 

36. 

37. 

38. 

39. 

40. 

41. 

42. 

43. 

44. 

45. 

46. 

47. 

48. 

49. 

50. 

51. 

52. 

53. 

54. 

One phalanx.               .             .                  .         .                .           .                 

9 

Guillotine amputation of tip without loss of bone .               .             .                            

5 

Middle finger 

Whole.               .             .                  .         .       .           .                . 

12 

Two phalanges.               .             .                  .         .          .           .                9 

One phalanx.               .             .                  .         .          .              .                 7 

Guillotine amputation of tip without loss of bone  

Ring or little finger 

Whole.               .             .                  .         .       .           .                . 

4 

7 

Two phalanges.               .             .                  .         .       .           .                 6 

One phalanx.               .             .                  .         .       .           .                  5 

Guillotine amputation of tip without loss of bone.               .             .                  
.         .       .           .                . 

2 

B.—Toes of right or left foot  

Great toe 

Through metatarso-phalangeal joint.               .             .                  .         
.       .           .                . 

14 

Part, with some loss of bone .               .             .                  .         .         3 

Any other toe 

Through metatarso-phalangeal joint.               .             .                  .           3 

Part, with some loss of bone .               .             .                  .         .         1 

Two toes of one foot, excluding great toe 

Through metatarso-phalangeal joint.               .             .                  .         
.       .           .                . 

5 

Part, with some loss of bone.               .             .                  .         .        

2 

Three toes of one foot, excluding great toe 

Through metatarso-phalangeal joint.               .             .                  .           6 

Part, with some loss of bone    

3 

Four toes of one foot, excluding great toe 

Through metatarso-phalangeal joint.               .             .                  .           9 

Part, with some loss of bone.               .             .                  .         .      

3 

Note.—Complete and permanent loss of the use of any limb or member referred to in this Schedule shall 

be deemed to be the equivalent of the loss of that limb or member. 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1[THE THIRD SCHEDULE 

(See section 52A) 

LIST OF OCCUPATIONAL DISEASES 

Occupational disease 

Employment 

Sl. 
No. 

(1) 

1. 

(2) 

PART A 

Infectious and parasitic diseases contracted in an occupation where 
there is a particular risk of contamination 

(3) 

(a)  All  work  involving 
exposure  to  health  or 
laboratory work; 
(b)  All  work  involving 
exposure  to  veterinary 
work; 
to 
(c)  Work  relating 
handling 
animals, 
animal  carcasses,  part 
of  such  carcasses,  or 
merchandise which may 
have been contaminated 
by  animals  or  animal 
carcasses; 

(d) Other work carrying 
a  particular 
risk  of 
contamination. 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

to 

to 

All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 

to 

to 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

2. 

Diseases caused by work in compressed air 

3. 

Diseases caused by lead or its toxic compounds 

4. 

5. 

1. 

2. 

Poisoning by nitrous fumes 

Poisoning by organphosphorus compounds. 

Diseases caused by phosphorus or its toxic compounds 

PART B 

Diseases caused by mercury or its toxic compounds 

1. Subs. by Act 45 of 1984, s. 14, for the Third Schedule (w.e.f. 27-1-1985). 

52 

 
  
 
  
 
  
 
 
 
                                                           
Occupational disease 

Employment 

Sl. 
No. 

(1) 

(2) 

             PART B—Contd. 

3. 

Diseases caused by benzene or its toxic homologues 

4. 

Diseases caused by nitro and amido toxic derivatives of benzene or 
its homologues. 

5. 

Diseases caused by chromium or its toxic compounds 

6. 

Diseases caused by arsenic or its toxic compounds 

7. 

Diseases caused by radioactive substances and ionising radiations 

8. 

9. 

Primary  epithelomatous  cancer  of  the  skin  caused  by  tar,  pitch, 
bitumen,  mineral  oil,  anthracene,  or  the  compounds,  products  of 
residues of these substances 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

Diseases caused by the toxic halogen derivatives of hydrocarbons 
(of the aliphatic and aromatic series) 

10. 

Diseases caused by the carbon disulphide 

11. 

Occupational cataract due to infra-red radiations 

12. 

Diseases caused by manganese or its toxic compounds 

13. 

Skin diseases caused by physical, chemical or biological agents not 
included in other items 

14. 

Hearing impairment caused by noise 

15. 

Poisoning  by  dinitrophenol  or  a  homologue  or  by  substituted 
dinitrophenol or by the salts of such substances 

53 

(3) 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
All  work 
exposure  to  the  action 
of 
radioactive 
substances  or  ionising 
radiations. 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

 
 
 
 
 
Sl. 
No. 

(1) 
16. 

Occupational disease 

Employment 

(2) 

(3) 

Diseases caused by beryllium or its toxic compounds 

17. 

Diseases caused by cadmium or its toxic compounds 

18. 

Occupational  asthama  caused  by  recognised  sensitising  agents 
inherent to the work process 

19. 

Diseases caused by flourine or its toxic compounds 

20. 

Diseases caused by nitro-glycerine or other nitroacid esters 

21. 

Diseases caused by alcohols and ketones. 

22. 

Diseases  caused  by  asphyxiants:  carbon  monoxide,  and  its  toxic 
derivatives, hydrogen sulfide 

PART B—Contd. 

23. 

Lung cancer and mesotheliomas caused by asbestos. 

24. 

Primary neoplasm of the epithelial, lining of the urinary bladder or 
the kidney or the ureter 

to 

All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 
All  work 
exposure 
concerned. 

to 

to 

to 

to 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

PART C 

1. 

Pneumoconioses  caused  by  sclerogenic  mineral  dust  (silicosis, 
anthraoosilicosis  asbestosis)  and  silico-tuberculosis  provided  that 
silicosis is an essential factor in causing the resultant incapacity or 
death 

All  work 
exposure 
concerned. 

to 

involving 
the  risk 

2. 

Bagassosis 

3. 

4. 

Bronchopulmonary  diseases  caused  by  the  cotton,  flax  hemp  and 
sisal dust (Byssinosis) 

Extrinsic  allergic  alveelitis  caused  by  the  inhalation  of  organic 
dusts 

5. 

Bronchopulmonary diseases caused by hard metals 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
exposure 
concerned. 

to 

All  work 
to 
exposure 
concerned.]]. 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

involving 
the  risk 

54 

 
 
 
 
 
ANNEXURE 
Duties on which provisions of the Act came into force in different areas 

Date 

1 
1-9-1948 

1-4-1950 

1-12-1950 

Provisions 

2 
Chapters I, II, III and VIII 

Areas 

3 

All the Provinces of India 

Sections 44 and 45 of 
Chapter IV and Chapter VII. 

Chapters I, II, III, VII and 
VIII and sections 44 and 45 
of Chapter IV. 

All  Part  A  States,  Ajmer,  Coorg, 
Delhi  and  Andaman  and  Nicobar 
Islands. 
Bilaspur, 
Pradesh, 
Himachal 
Kutch,  Bhopal,  Tripura,  Vindhya 
Pradesh and Manipur. 

24-11-1951 

Do. 

All  Part  B  States  except  the  State 
of Jammu and Kashmir*. 

24-11-1951 

Chapter VA 

24-2-1952 

1-9-1952 

1-9-1954 

1-9-1971 

Chapter IV (except sections 
44 and 45). Chapter V and 
Chapter VI. 
Sub-section (1) of section 76, 
sections 77, 78, 79 and 81 of 
Chapter VI. 

Chapters I, II, III, V-A, 
VII, VIII and sections 44 
and 45 of Chapter IV. 

Chapters I, II, III, V-A, 
VII and VIII and sections 
44 and 45 of Chapter IV. 

Whole of India except the State of 
Jammu and Kashmir*. 
State  of  Delhi  and  Kanpur  area  of 
Uttar Pradesh. 

Whole of India except the State of 
Jammu  and  Kashmir*,  State  of 
Delhi,  Kanpur  area  of  Uttar 
Pradesh. 
United  Khasi-Jaintia  Hills 
District,  Garo  Hills  District, 
Lushai  Hills  District,  North 
Cachar Hills, Mikir Hills. 
Union  territory  of  Goa,  Daman 
and Diu. 

The  State  of 
Kashmir*. 

Jammu  and 

In  all  the  areas  of,  Dharmapuri 
district  and  Ranipet  district,  in 
the State of Tamil Nadu. 

20-11-1971  Chapters I, II, III, VII and 

01-02-2021 

VIII and sections 44 and 
45 of Chapter IV. 

(i) Sections 
38,39,40,41,42,43 & 45A 
to 45H of Chapter IV. 
(ii) Sections 46 to 73 of 
Chapter V; and 
(iii) Sections 74, 75. Sub-
sections (2) to (4) of 
section 76, 80, 82 and 83 
of Chapter VI 

Notification numbers. 
etc. 
4 
SS.  21(2),  dated  the  31st 
August,  1948,  Gazette  of 
India, 1948, Extraordinary. 
SS.  121(32),  dated  the  3rd 
April,  1950,  Gazette  of 
India, 1950, Part I, sec. 1. 
SRO  997,  dated  the  2nd 
December,  1950,  Gazette 
of India, 1950, Part II, sec. 
3. 

SRO  1832,  dated  the  24th 
November,  1951,  Gazette 
of India, 1951, Part II, sec. 
3. 

Do. 

SRO  251,  dated  the  1st 
February,  1952,  Gazette  of 
India, 1952, Part II, sec. 3. 
SRO  1576,  dated  the  3rd 
September,  1952,  Gazette 
of India, 1952, Part II, sec. 
3. 
SRO 2972, dated the 1st 
September, 
1954, 
Gazette  of  India,  1954, 
Part II, sec. 3.  
S.O.  3262,  dated  the  1st 
September, 
1971, 
Gazette  of  India,  1971, 
Extraordinary,  Part  II, 
sec. 3(ii). 
the 
SRO  6163,  dated 
1971, 
26th  October, 
Gazette  of  India,  1971, 
Part II, sec. 3(ii). 
S.O.  373(E),  dated  the 
2021, 
January, 
27th 
Gazette  of  India,  2021, 
Extraordinary,  Part  II, 
sec. 3(ii) 

*. Vide Notification No. S.O. 3912 (E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 
and Kashmir and the Union territory of Ladakh. 

55 

 
 
 
 
 1-04-2021  

Ss.  38, 39, 40, 41, 42, 43 
and Ss. 45A to 45H of 
Chapter IV; Ss. 46 to 73 of 
Chapter V; and Ss. 74, 75, 
sub-section (2) to (4) of 
section 76, 80, 82 and 83 
of Chapter VI, in all the 
areas of   
Chapter IV (except 
sections 44 and 45 which 
have already been brought 
into force) and Chapter V 
and VI (except sub-section 
(1) of sections 76 and Ss. 
77, 78, 79 and 81, 
01-06-2021  Chapter IV (except 

1-6-2021 

1-8-2021 

1-10-2021 

1-10-2021 

sections 44  and 45); and 
Chapter V and VI [except 
sub-section (1) of section 
76 and sections 77, 78, 79 
and 81, 
Sections 38,39,40,41,42, 
43 and sections 45A to 
45H of Chapter IV; 
sections 46 to 73 of 
chapter V; and sections 74, 
75, sub-sections (2) to (4) 
of sections 76, 80, 82 and 
83 of Chapter VI; 
Sections 38,39,40,41,42, 
43 and sections 45A to 
45H of Chapter IV; 
sections 46 to 73 of 
chapter V; and sections 74, 
75, sub-sections (2) to (4) 
of sections 76, 80, 82 and 
83 of Chapter VI, 
Chapter IV (except 
sections 44 and 45 which 
have already been brought 
into force) and Chapter V 
and VI [except sub-section 
(1) of section 76 and 
sections 77, 78, 79 and 81 
which have already been 
brought into force] 

Unakoti  district,  South  Tripura 
district  and  khowai  district  in 
the State of Tripura. 

S.O.  1354(E),  dated  25th 
March,  2021,  Gazette  of 
India, 
2021, 
Extraordinary,  Part  II, 
sec. 3(ii) 

all  the  areas  of  the  Alipurduar, 
Cooch  Behar,  Kalimpong, 
North  Dinajpur,  Purulia,  and 
South Dinajpur District in the 
State of West Bengal. 

S.O.  1950(E),  dated  21st 
May,  2021,  Gazette  of 
India, 
2021, 
Extraordinary,  Part  II, 
sec. 3(ii) 

Chapter  IV  (except  sections  44  
and  45);  and  Chapter  V  and 
VI  [except  sub-section  (1)  of 
section  76  and  sections  77, 
78, 79 and 81, 

S.O. 2068(E), dated 28th 
May,  2021,  Gazette  of 
India, 
Extraordinary, 
Part II, sec. 3(ii) 

All the areas of Madurai district 
in the State of Tamil Nadu. 

S.O.  2983(E),  dated  28th 
July,  2021,  Gazette  of 
Extraordinary, 
India, 
Part II, sec. 3(ii) 

All the areas of Dhalai, Gomati, 
North  Tripura  and  Sepahijala 
district in the State of Tripura. 

S.O. 3952(E), dated 23rd 
2021, 
September, 
India, 
of 
Gazette 
Extraordinary,  Part  II, 
sec. 3(ii) 

In  the  entire  areas  of  Baksa, 
Charaideo,  Dima  Hasao, 
and 
Hailakandi, 
Kokrajha  district  in  the  State 
of  Assam,  in  addition  to  the 
already  implemented  area  in 
the district. 

Hojai 

S.O.  3964(E),  dated  24th 
September, 
2021, 
India, 
of 
Gazette 
Extraordinary,  Part  II, 
sec. 3(ii) 

56 

 
 
 
 
 
1-11-2021 

1-11-2021 

1-1-2022 

1-4-2022 

1-9-2022 

to  73  of 

Sections  38,  39,  40,  41, 
42,  43  and  sections    45A 
to 45H of Chapter IV: 
sections  46 
Chapter V; and  
Sections 
sub-sections  (2)  to  (4)  of 
section  76,  80,  82  and  83 
of Chapter VI; 

74, 

Sections  38,39,40,41,42,43 
and sections 45A to 45H of 
Chapter  IV;  sections  46  to 
73  of  Chapter  V;  and 
sub-
sections 
sections 
(4)  of 
sections  76,  80,  82  and  83 
of Chapter VI, 

74, 
(2) 

75, 

to 

Sections 38, 39, 40, 41, 42, 
43 and sections 45A to 45H 
of  Chapter  IV,  ss.  46  to  73 
of Chapter V and ss. 74, 75, 
sub-sections (2) to (4) of ss. 
76,  80,  82  and  83  of 
Chapter VI; 
Sections 38, 39, 40, 41, 42, 
43 and sections 45A to 45H 
of Chapter IV; 
Sections  46 
Chapter V; and 
Sections 
sub-sections  (2)  and  (4)  of 
section 76, 80, 82 and 83 of 
Chapter VI. 

to  73  of 

74, 

In  the  areas  of  Ahmednagar, 
Jalna and Yavatmal district in 
the State of Maharashtra. 

S.O.  4476  (E),  dated 
2021, 
27th  October, 
Gazette 
India, 
of 
Extraordinary,  Part  II, 
sec. 3(ii) 

Sections 38, 39, 40,41, 42, 
43 and sections 45A to 
45H of Chapter IV; 
sections 46 to 73 of 
Chapter V; and 
sections 74, 75, sub-
sections (2) to (4) of 
section 76, 80, 82 and 83 
of Chapter VI, 

In  all  the  areas  of  Coimbatore 
and  Thanjavur  districts in  the 
State of Tamil Nadu. 

S.O.  4526  (E),  dated 
29th  October, 
2021, 
India, 
of 
Gazette 
Extraordinary,  Part  II, 
sec. 3(ii) 

75,                     

All  the  entire  areas  of  the 
following districts in the state of 
Assam:-- 
1.  Assam-Barpeta,  Bongaigon, 
Bishwanath, Cachar, Chirang, 
Darrang,  Dhemaji,  Dhubri, 
Golaghat, 
Goalpara, 
Lakhimpur,  Majuli,  Nalbari, 
Marigaon,  Nagaon,  Sibsagar, 
Udalguri, West Kabri Anglog 
(in  addition  to  the  already 
the 
implemented  area 
district). 

in 

2.  Assam--  Kabri  Anglong, 
Karimganj,  South  Salmara 
Mankachar. 

All  the  areas  of  Nagapattinam 
district  in  the  State  of  Tamil 
Nadu. 

the 

areas 

of 
All 
Ramanathapuram 
and 
Sivagangai districts in the State 
of Tamil Nadu. 

S.O.  5371  (E),  dated 
23rd  December,  2021, 
Gazette 
India, 
of 
Extraordinary,  Part  II, 
sec. 3(ii) 

S.O.  1534  (E),  dated 
2022, 
31st  March, 
Gazette 
India, 
of 
Extraordinary,  Part  II, 
sec. 3(ii) 

S.O.  3741(E),  dated  10th 
August, 2022, Gazette of 
India, 
Extraordinary, 
Part II, sec. 3(ii). 

75,                     

57 

 
 
 
 
 
 
 
1-10-2022 

1-12-2022 

1-12-2022 

1-1-2023 

to  43  and 
Sections  38 
sections  45A  to  45H  of 
Chapter  IV;  sections  46  to 
73  of  Chapter  V;  and 
sections  74,  75,  sub-section 
(2) to (4) of section 76, 80, 
82 and 83 of Chapter VI. 

districts, 

All  the  area  of  Krishnagiri  and 
Tiruchirappalli 
in 
addition  to  the  already  notified 
areas  in  the  district,  and  in  all 
the  area  of  Perambalur  district, 
in the State of Tamil Nadu. 

S.O.  4340(E),  dated  15th 
2022, 
September 
Gazette 
India, 
of 
Extraordinary,  Part  II, 
sec. 3(ii). 

All the area of Dindigul district, 
the  already 
in  addition 
to 
notified  areas  of 
the  said 
district,  in  the  State  of  Tamil 
Nadu. 
75,                        

All the area of Gajapati district, 
in  addition 
the  already 
to 
notified area of the said district, 
and in all the areas of Nuapada, 
Deogarh 
Malkangiri 
75,                       
districts, in the state of Odisha. 

and 

S.O.  5335(E),  dated  16th 
November 2022, Gazette 
of  India,  Extraordinary, 
Part II, sec. 3(ii). 

S.O.  5338(E),  dated  16th 
November 2022, Gazette 
of  India,  Extraordinary, 
Part II, sec. 3(ii). 

All the areas of Shore, Shajapur 
and Guna disgtricts, in addition 
to  the  already  notified  areas  of 
the said districts, in the State of 
Madhya Pradesh. 

S.O.  5878(E),  dated  15th 
December 2022, Gazette 
of  India,  Extraordinary, 
Part II, sec. 3(ii). 

74, 

to  43  and 
Section  38 
sections  45A  to  45H  of 
Chapter  IV;  sections  46  to 
73  of  chapter  V;  and 
sections 
sub-sections  (2)  to  (4)  of 
sections  76,  80,  82  and  83 
of Chapter VI. 
to  43  and 
Sections  38 
sections  45A  to  45H  of 
Chapter  IV;  sections  46  to 
73  of  chapter  V;  and 
sections 
sub-sections  (2)  to  (4)  of 
sections  76,  80,  82  and  83 
of chapter VI. 
to  43  and 
Sections  38 
sections  45A  to  45H  of 
chapter  IV;  sections  46  to 
73 of Chapter V; and  
sub-
Sections  74,  75, 
sections 
(4)  of 
sections  76,  80,  82  and  83 
of Chapter VI. 

74, 

(2) 

to 

For notifications by which Chapter IV (except sections 44 and 45), Chapter V and Chapter VI [except 
sub-section (1) of section 76, sections 77, 78 and 79 and 81] were brought into force in different areas, 
cities, towns and industrial area, see Gazette of India, Part II, section 3. 

58 

 
 
